Gold, silver up on safe-haven buying as U.S. equities sell off

Gold and silver prices are are higher in midday U.S. trading Thursday, on more safe-haven demand amid risk aversion that is still keen in the marketplace. Global stock markets and the U.S. stock indexes are still on shaky ground amid the biggest geopolitical crisis in decades that appears to be worsening. Some hot U.S. inflation data today was also bullish for the metals markets. April gold futures were last up $21.50 at $2,009.70 and May Comex silver was last up $0.554 at $26.385 an ounce.

The U.S. data point of the day Thursday was the consumer price index report for February, which was up 7.9%, year-on-year. That number is hot, at a four-decade high, and continues to stoke inflation that threatens to derail global economic growth just as most countries are finally getting past the Covid pandemic.

Global stocks markets were mixed overnight, with European shares mostly down and Asian shares mostly up. The U.S. stock indexes are lower at midday. Some stock market bears are calling Wednesday’s U.S. rally a "dead-cat bounce" in a bear market. The U.S. stock indexes remain in near-term price downtrends on the daily charts. Risk aversion remains elevated amid the ongoing Russia-Ukraine war. Talks between the two warring nations have produced no positive results, including those held today.

              Gold prices could hold around $2,000 for the next two years – ABN AMRO

Meantime, in the Euro zone the European Central Bank made no major changes in ECB monetary policy, as expected.

The key outside markets see Nymex crude oil prices lower and trading around $106.00 a barrel. The U.S. dollar index is higher today. The benchmark U.S. 10-year Treasury note is presently yielding around 1.95%. U.S. Treasury yields are on the rise this week.

Technically, April gold futures bulls have the firm overall near-term technical advantage. Prices are in a five-week-old uptrend on the daily bar chart. Bulls' next upside price objective is to produce a close above solid resistance at the record high of $2,178.80. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,950.00. First resistance is seen at today’s high of $2,015.10 and then at $2,025.00. First support is seen at $2,000.00 and then at today’s low of $1,975.00. Wyckoff's Market Rating: 8.5

May silver futures bulls have the solid overall near-term technical advantage. Prices are in a five-week-old uptrend on the daily chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at this week’s high of $27.495 an ounce. The next downside price objective for the bears is closing prices below solid support at $24.00. 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's Market Rating: 7.0.

May N.Y. copper closed up 885 points at 466.05 cents today. Prices closed nearer the session high today. Prices this week scored a bearish and huge "key reversal" down on the daily bar chart, which is one clue that a market top is in place. The copper bulls still have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 490.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 444.00 cents. First resistance is seen at 470.00 cents and then at 475.00 cents. First support is seen at this week’s low of 455.30 cents and then at 450.00 cents. Wyckoff's Market Rating: 6.5.

By Jim Wyckoff

For Kitco News

Time to buy Gold and Silver on the dips

David