Gold Slightly Up on Tepid Short Covering Amid Downtrend

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Mar 01, 2021 12:42 NY TimeKitco 10AM Silver Fix

(Kitco News) – Gold futures prices are just a bit up in midday U.S. trading Monday and near the session low. The yellow metal saw a corrective rebound after last Friday hitting an eight-month low. Still, buying interest in gold is squelched early this week by rallying U.S. stock indexes and a firmer U.S. dollar index. Also, the daily chart for gold remains firmly near-term bearish following last Fridayrsquo;s technically negative weekly and monthly low closes. April gold futures were last up $2.60 at $1,731.40 and May Comex silver was last up $0.495 at $26.94 an ounce. 

Global stock markets were higher overnight. U.S. stock indexes are solidly higher at midday as global bond market yields have down-ticked a bit to start the trading week. Equities got hit last week when the U.S. 10-year Treasury yield moved above 1.6% to a one-year high. The U.S. 10-year on Monday is currently fetching 1.445%.

President Biden’s $1.9 trillion U.S. stimulus bill was passed by the House of Representatives on Saturday and now moves to the Senate. With some unemployment support measures running out in two weeks, the focus for lawmakers is on getting the bill passed through the Senate and ready for Biden’s signature as quickly as possible.nbsp;New stimulus and a new Johnson amp; Johnson Covid vaccine that is rolling out have given traders and investors a boost, at present. Thatrsquo;s a negative for the safe-haven precious metals.

The key “outside markets” today see Nymex crude oil futures prices near steady and trading around $61.50 a barrel. There is an OPEC meeting on Thursday that the marketplace will closely monitor. The U.S. dollar index is a bit higher today. 

Technically, April gold futures gold bears have the solid overall near-term technical advantage. Prices are in a seven-week-old downtrend on the daily bar chart. Bullsrsquo; next upside price objective is to produce a close above solid resistance at $1,800.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00. First resistance is seen at $1,750.00 and then at todayrsquo;s high of $1,757.40. First support is seen at todayrsquo;s low of $1,728.30 and then at the February low of $1,714.90.

May silver futures bulls have the slight overall near-term technical advantage but a five-week-old price uptrend on the daily chart has now stalled out. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the February high of $30.04 an ounce. The next downside price objective for the bears is closing prices below solid support at $25.00. First resistance is seen at todayrsquo;s high of $27.175 and then at $27.50. Next support is seen at todayrsquo;s low of $26.655 and then at $26.155.

May N.Y. copper closed up 150 points at 410.80 cents today. Prices closed nearer the session low today. Prices have backed off last weekrsquo;s contract and 9.5-year high. The copper bulls still have the solid overall near-term technical advantage. Prices are in a 12-month-old uptrend on the daily bar chart. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at 440.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 390.00 cents. First resistance is seen at todayrsquo;s high of 418.10 cents and then at 420.50 cents. First support is seen at 406.60 cents and then at 400.00 cents.

Posted by :

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com