Gold, silver hit by profit-taking, weak long liquidation

(Kitco News, Thurs. Feb. 27th,2025)- Gold and silver prices are solidly lower and hit three-week lows in midday U.S. trading Thursday. Profit taking and weak long liquidation from the shorter-term futures traders are featured today. Veteran commodity market watchers remember the old trading adage: “A bull market needs to be fed fresh fundamental news often.” Such has not been the case for gold lately, even though there remain bullish elements that will likely keep a floor under gold prices. The silver bulls have lost technical power. April gold was last down $38.70 at $2,892.30. May silver prices were last down $0.51 at $32.065.

The key outside markets today see the U.S. dollar index solidly up, which is also a negative for the precious metals markets. Nymex crude oil futures prices are higher and trading around $70.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.3%. Bond yields have dipped lately. Bloomberg reports: “Investors in U.S. government bonds are starting to bet the Federal Reserve will soon need to pivot from worrying about sticky inflation to fretting about slowing economic growth.”

Friday comes the U.S. data point of the week, which is the January personal income and outlays report and its personal consumption expenditures (PCE) inflation indexes. The PCE price index is seen coming in at up 2.5%, year-on-year, compared to a rise of 2.6% in the December report.

Technically, April gold futures bulls have the solid overall near-term technical advantage. However, a price uptrend on the daily bar chart has stalled out. Bulls’ next upside price objective is to produce a close above solid resistance at the contract high of $2,974.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,800.00. First resistance is seen at the overnight high of $2,935.80 and then at $2,950.00. First support is seen at today’s low of $2,879.00 and then at $2,845.00.

May silver futures bulls have slight the overall near-term technical advantage but a price uptrend on the daily bar chart has been negated. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $33.60. The next downside price objective for the bears is closing prices below solid support at $31.00. First resistance is seen at Wednesday’s high of $32.61 and then at $33.00. Next support is seen at the overnight low of $32.155 and then at this week’s low of $31.895.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com