Gold and silver prices rise as stock markets falter


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(Kitco News) – Gold and silver prices are higher in early U.S. trading on Thursday on more safe-haven demand amid still-high risk aversion in the market . Global stock markets are still on shaky ground amid the biggest geopolitical crisis in decades that appears to be getting worse. April gold futures last rose $19.80 to $2,008.10 and May Comex silver last rose $0.314 to $26.125 an ounce .

Global stock markets were mixed overnight, with European stocks mostly down and Asian stocks mostly up. US stock indices are trending towards lower openings as the day’s session in New York begins. Some stock market bears are calling Wednesday’s U.S. rally a “dead cat bounce.” US stock indices remain in a short-term downtrend on daily charts. two warring nations have produced no positive results, including those standing today.

Thursday’s US data point for the day is the Consumer Price Index report for February, which is expected to rise 0.7% from January and 7.8% year-on-year. If realized, those numbers would be hot, at a four-decade high, and would continue to fuel inflation that threatens to derail global economic growth just as most countries are finally overcoming the Covid pandemic.

Meanwhile, in the Eurozone, the European Central Bank is meeting today. No major changes in ECB monetary policy are expected, but the wording of ECB President Legarde’s comments will be scrutinized by the market.

According to reports, a bipartisan group of US senators is considering passing a bill that would impose sanctions on the buying or selling of Russian “blood” gold. Russia would have a stock of gold valued at 132 billion dollars. Lawmakers want to limit Russia’s ability to use its gold reserves, namely selling gold for silver. Some analysts say such a move also targets China and India, as Russian gold is already cut off from the London and New York markets. Lawmakers pointed to Venezuela’s apparent ability to circumvent US sanctions and launder money through the sale of gold.

Major outside markets see Nymex crude oil prices rising and trading around $113.50 a barrel. The US Dollar Index is firmer today. The benchmark 10-year US Treasury currently yields 1.924%. US Treasury yields are up this week.

US economic data due out Thursday includes the weekly jobless claims report, the consumer price index, real earnings and the monthly Treasury budget statement.

Technically, the April gold futures bulls have the overall short-term technical advantage. However, they seem to be out of gas. Prices are still in a five week old uptrend on the daily bar chart. The next upside price target for the Bulls is to produce an April close in futures above major resistance at the all-time high of $2,078.80. The Bears’ next short-term downside price objective is to push futures prices below strong technical support at $1,950.00. The first resistance is seen at $2,025.00. then to $2,050.00. First support is seen at $2,000.00 and then at $1,976.50. Wyckoff Market Rating: 8.0

24 hour live money chart [ Kitco Inc. ]

May futures bulls on silver still have the overall short-term technical advantage. Prices are still in a five week old uptrend on the daily bar chart. However, the bulls now look exhausted in the near term. The next upside price objective for silver bulls is to close prices above strong technical resistance at $28.00 per ounce. The next downside price objective for the bears is to close prices below the strong support at $24.00. The first resistance is seen at $26.50 and then at $27.00. Next support is seen at this week’s low of $25.465 and then at $25.00. Wyckoff Market Rating: 7.0.

Warning: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. This is not a solicitation to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage resulting from the use of this publication.


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