Gold rallies as bulls buy the early dip

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Silver Price & PGMs

Mar 21, 2022 12:39 NY TimeKitco 10AM Silver Fix

(Kitco News, Mon. Mar. 21st, 2022) – Gold prices are a higher in midday U.S. trading Monday, boosted by bargain hunting in the cash market and short covering in the futures market. Sharply higher oil prices again today also helped to lift the metals markets. April gold futures were last up $7.90 at $1,937.10 and May Comex silver was last up $0.383 at $25.47 an ounce.

Global stocks markets were mixed overnight. The U.S. stock indexes are mixed at midday. The Russia-Ukraine war continues on the front burner of the marketplace. Russia over the weekend reportedly used a hyper-sonic missile to attack a Ukrainian city, with some military analysts saying the war is entering a new chapter of deadlier consequences for Ukrainian citizens.

President Biden Thursday meets with NATO and EU leaders to discuss Russia’s invasion of Ukraine. The two-day summit will be held at NATO headquarters in Brussels. Biden will also join a European Council meeting. During the summit, Biden will “discuss ongoing deterrence and defense efforts” and reaffirm the U.S. commitment to NATO allies, said the Biden administration.

The key outside markets see Nymex crude oil prices solidly higher and trading around $110.50 a barrel. The U.S. dollar index is slightly lower at midday today. The benchmark U.S. 10-year Treasury note is presently yielding 2.2%. 

Technically, April gold futures bulls have the overall near-term technical advantage. Recent price action still suggests a market top is in place. Bulls’ next upside price objective is to produce a close above solid resistance at $2,000.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,850.00. First resistance is seen at $1,951.00 and then at $1,956.90. First support is seen at today’s low of $1,917.20 and then at $1,908.10.

May silver futures bulls have the overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the March 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 $25.75 and then at $26.00. Next support is seen at $25.00 and then at last week’s low of $24.5. Wyckoff’s Market Rating: 6.5.

May N.Y. copper closed down 170 points at 472.35 cents today. Prices closed near 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 490.00 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 476.00 cents and then at 480.00 cents. First support is seen at today’s low of 465.60 cents and then at 460.00 cents. 

Posted by:

Jack Dempsey, President

jdemp2003@gmail.com