Gold, silver down but well up from early lows

Gold and silver prices are are solidly lower at midday Tuesday, but have moved well up from the sharp losses and five-week lows that were hit in early U.S. trading. The precious metals were pressured by an increase in trader and investor risk appetite. Profit taking and weak long liquidation by the shorter-term futures traders was also featured in gold and silver. Lower crude oil prices and rising bond yields are also weighing on the safe-haven metals. April gold futures were last down $26.30 at $1,913.70 and May Comex silver was last down $0.441 at $24.755 an ounce.

Risk appetite up-ticked Tuesday as Russia and Ukraine are holding more ceasefire talks. One Russian official termed the talks as being constructive. Also, the grind of that war and no major new developments recently have somewhat numbed the marketplace. Limiting trader and investor enthusiasm, especially in the raw commodity sector (including gold and silver), is Covid cases that are on the rise in China, including China placing its largest city of Shanghai in a major rolling lockdown. It seems the pandemic just cannot be tamped down for long. Global stocks markets were mostly higher overnight. The U.S. stock indexes are higher at midday.

Hawkish Fed spooks hedge funds to take some profits in gold, but sentiment remains solidly bullish

The key outside markets see Nymex crude oil prices solidly lower and trading around $102.50 a barrel. An OPEC meeting is scheduled for Thursday to discuss cartel production levels from May forward. The U.S. dollar index is solidly lower early today. The benchmark U.S. 10-year Treasury note is presently yielding 2.42%.

Technically, April gold futures prices hit a five-week low early on today. Bulls have the overall near-term technical advantage but are fading badly this week. Prices are now in a three-week-old downtrend on the daily bar chart. Bulls' next upside price objective is to produce a close above solid resistance at last week’s high of $1,967.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,850.00. First resistance is seen at today’s high of $1,929.40 and then at $1,950.00. First support is seen at $1,900.00 and then at today’s low of $1,888.30. Wyckoff's Market Rating: 6.0

May silver futures prices hit a five-week low early on today. The silver bulls have the slight overall near-term technical advantage but are fading. Prices are now in a three-week-old downtrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at last week’s high of $26.16 an ounce. The next downside price objective for the bears is closing prices below solid support at $23.50. First resistance is seen at today’s high of $25.135 and then at $25.50. Next support is seen at $24.55 and then at $24.25. Wyckoff's Market Rating: 5.5.

May N.Y. copper closed up 90 points at 473.45 cents today. Prices closed nearer the session high today. The copper bulls have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 500.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the March low of 446.85 cents. First resistance is seen at last week’s high of 481.75 cents and then at 490.00 cents. First support is seen at this week’s low of 464.20 cents and then at 460.00 cents. Wyckoff's Market Rating: 6.5.

By Jim Wyckoff

For Kitco News

Time to buy Gold and Silver on the dips