Gold and silver are down sharply despite limited risk aversion, technical sales

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(Kitco News) – Gold and silver prices are significantly lower and at multi-week lows by noon in the US on Tuesday. The bears are confident today amid a rally in the US dollar index, falling crude oil prices and rising bond yields. Chart-based bears are also pushing their case amid very weak short-term technical postures for both metals. In addition, the risk appetite of traders and investors generally remains optimistic enough to keep global equity markets strong. April gold futures last fell from $ 30.20 to $ 1,682.00 and May ExCom silver last fell from $ 0.681 to $ 24.09 l ‘ounce.

Global equity markets were almost stable, if not firmer overnight. US stock indices are weaker at noon. However, risk aversion was not strong on Tuesday after some concern on Monday about the unwinding of the stock market positions of a large investment fund, Archegos, after the company became over-leveraged. A few individual stocks have been affected, but the stock and financial markets in general have not – at least not yet. Most market watchers believe the issue will go away without contagion.

Traders and investors are generally optimistic amid a strengthening U.S. economy, with more people receiving the Covid vaccine and, with President Biden, expected to unveil on Wednesday the first of two expected parts of the next phase of its American economic program. This package would cost $ 3-4 trillion. However, a somewhat subdued enthusiasm in the market is an increase in Covid infections in Europe and now in the United States.

Major foreign markets today see the US dollar index rise and hit another 4.5 month high overnight. Nymex crude oil prices are lower and trading around $ 60.50 per barrel. The benchmark 10-year US Treasury yield is currently 1.772%, hitting a 14-month high overnight.

Technically, April gold futures hit a three-week low today. Gold bears have the strong overall technical advantage in the short term and have gained more power today. The next bullish price target is to produce a close above solid resistance at this week’s high of $ 1,732.60. The next short-term bearish price drop target for the Bears is to push futures prices under strong technical support to the March low of $ 1,673.30. First resistance is seen at $ 1700.00 and then at today’s high of $ 1712.60. The first support is seen at $ 1673.30 and then at $ 1660.00. Wyckoff Market Rating: 2.5

May silver futures prices hit a 3.5-month low today. Silver bears have the overall firm technical advantage in the short term. Prices are in a two month downtrend on the daily bar chart. The next bullish price target for Silver Bulls is to close prices above strong technical resistance at $ 25.50 an ounce. The next lower price target for the bears is to close the price below strong support at $ 23.00. The first resistance is seen at today’s high of $ 24.77 and then at $ 25.00. The next support is seen at $ 24.00 and then at $ 23.75. Wyckoff Market Rating: 3.0.

May NY copper closed down 565 points at 397.80 cents today. Prices closed closer to the session low today. Copper bulls have the overall technical advantage in the short term. However, prices are in a five week downtrend on the daily bar chart. The next bullish price target for copper bulls is to push and close the price above the strong technical resistance at 420.00 cents. The next lower price target for the bears is to close prices under strong technical support at the March low of 384.90 cents. First resistance is seen at this week’s high of 408.25 cents and then at 410.50 cents. First support is seen at last week’s low of 394.20 cents and then 390.00 cents. Wyckoff Market Rating: 6.5.