Gold, silver push higher on bullish charts, safe-haven demand

(Kitco News, Mon. April 18th, 2022) – Gold and silver prices are solidly higher at midday Monday and hit five-week highs. Save-haven demand and chart-based buying are featured, to suggest still more upside in the near term. June Comex gold futures briefly pushed to an intra-day high of $2,003.00. June gold futures were last up $17.80 at $1,992.70 and May Comex silver was last up $0.56 at $26.26 an ounce.

Risk aversion remains elevated amid the Russia-Ukraine war that shows no signs of ending any time soon and the Covid surge in China that has locked down major cities in the world’s second-largest economy. Global stocks markets were mixed overnight. The U.S. stock indexes are weaker at midday. Markets in Hong Kong, Australia and much of Europe were closed for the Easter holiday Monday.

A feature in the marketplace to start the trading week is rising U.S. Treasury yields. The yield on the benchmark 10-year U.S. Treasury note is presently fetching 2.847%. which is near a more-than-three-year high seen overnight. A Dow Jones Newswires headline today reads, “Sell off in Treasuries, worst in decades, rattles investors.” Inflation worries and an aggressively hawkish Federal Reserve have pushed bond yields up (prices down). However, the closely watched yield curve does not see the 2-year and 10-year yields inverted as the 10-year yield remains above the 2-year.

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Nymex crude oil futures prices are near steady today and trading around $107.00 a barrel. The U.S. dollar index is higher early today and near last week’s two-year high.

Technically, June gold futures prices hit a five-week high today. Bulls have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $2,025.00. 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 $2,003.00 and then at $2,018.30. First support is seen at today’s low of $1,974.40 and then at $1,962.70.

May silver futures prices hit a five-week high today. The silver bulls have the solid overall near-term technical advantage and have momentum. 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 $25.00. First resistance is seen at today’s high of $26.495 and then at $26.75. Next support is seen at $26.00 and then at today’s low of $25.805.

May N.Y. copper closed up 900 points at 481.40 cents today. Prices closed nearer the session high today and closed at a six-week high close. The copper bulls have the firm overall near-term technical advantage. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at the March high of 503.95 cents. The next downside price objective for the bears is closing prices below solid technical support at 460.00 cents. First resistance is seen at the April high of 486.00 cents and then at 490.00 cents. First support is seen at 475.00 cents and then at 470.00 cents.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com