Price pressure on gold, silver in quieter marketplace

(Kitco News, Mon. Feb. 26th, 2024)  – Gold and silver prices are lower in early U.S. trading Monday. Chart-based selling is featured in a quieter marketplace to start the trading week. The precious metals markets traders are looking for a fresh fundamental spark to drive price action. April gold was last down $7.00 at $2,042.40. March silver was last down $0.432 at $22.54.

Asian and European stock markets were mixed in overnight trading. U.S. stock index futures are set to open slightly down when the New York day session begins, after setting record highs Friday. The recent stock market rally has been a negative for the safe-haven metals, amid the better risk appetite in the marketplace.

The key outside markets today see the U.S. dollar index slightly lower. Nymex crude oil prices are slightly down and trading around $76.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching 4.246%.

U.S. economic data due for release Monday includes new residential sales and the Texas manufacturing outlook survey.

Technically, the gold futures bears have the slight overall near-term technical advantage. Prices are in a three-month-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in April futures above solid resistance at the February high of $2,083.20. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,000.00. First resistance is seen at last week’s high of $2,053.20 and then at $2,061.00. First support is seen at Friday’s low of $2,025.40 and then at $2,007.60. Wyckoff’s Market Rating: 4.5.

The silver bears have the overall near-term technical advantage. Silver bulls’ next upside price objective is closing March futures prices above solid technical resistance at the February high of $23.56. The next downside price objective for the bears is closing prices below solid support at the February low of $21.975. First resistance is seen at $23.00 and then at $23.20. Next support is seen at $22.40 and then at $22.00.

Posted by :

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com