(Kitco News) – Gold and silver prices are solidly lower in midday U.S. trading Monday, as the key “outside markets” are in bearish daily postures for the precious metals: the U.S. dollar index is firmly higher and U.S. Treasury yields are rising. The dollar strength and rise on bond yields is mostly due to the surprisingly strong U.S. jobs report on Friday that has hawkish implications on Federal Reserve monetary policy. April gold was last down $19.30 at $2,034.20. March silver was last down $0.376 at $22.42.
U.S. stock index futures are lower near midday. Risk aversion is somewheat elevated to start the trading week, following weekend U.S. and U.K. air strikes on Houthi rebel bases in Syria and Iraq, which were followed by at least six Kurdish fighters being killed in a drone attack on a Syrian base housing U.S. troops. However, on this day gold and silver are seeing scant safe-haven demand.
The key outside markets today see the U.S. dollar index solidly higher and hitting a nearly three-month high. Nymex crude oil prices slightly weaker and trading around $72.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching 4.171%–up significantly from what was seen just before last Friday’s U.S. jobs report.
Technically, April gold futures bulls have the slight overall near-term technical advantage but are fading again. Bulls’ next upside price objective is to produce a close above solid resistance at $2,100.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,000.00. First resistance is seen at $2,050.00 and then at today’s high of $2,059.10. First support is seen at the January low of $2,023.30 and then at the December low of $2,007.60. Wyckoff’s Market Rating: 5.5.
March silver futures bears have the firm overall near-term technical advantage. A two-month-old downtrend is in place on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $24.00. The next downside price objective for the bears is closing prices below solid support at the October low of $21.17. First resistance is seen at today’s high of $22.84 and then at $23.00. Next support is seen at $22.00 and then at $21.75. Wyckoff’s Market Rating: 3.0.
March N.Y. copper closed down 515 points at 377.00 cents today. Prices closed nearer the session low today. The copper bulls have lost their slight overall near-term technical advantage. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at the December high of 397.40 cents. The next downside price objective for the bears is closing prices below solid technical support at the January low of 371.45 cents. First resistance is seen at today’s high
of 383.30 cents and then at Friday’s high of 386.25 cents. First support is seen at 375.00 cents and then at the January low of 371.45 cents. Wyckoff’s Market Rating: 5.0.
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