Sudden drop in prices of gold, silver in the form of greenback, bond yields rise

Editor’s Note: With such market volatility, stay up to date with daily news! Take a minute to read our quick summary of today’s hot news and expert opinions. Register here!

(Kitco News) – Gold and silver prices are significantly lower and hit multi-week lows at the start of US negotiations on Tuesday, amid a rally in the US dollar index, falling crude oil prices and rising bond yields. In addition, the risk appetite of traders and investors remains optimistic enough to keep global equity markets strong. April gold futures last fell from $ 25.70 to $ 1,686.60 and May ExCom silver last fell from $ 0.481 to $ 24.29l ‘ounce.

Global equity markets were almost stable, if not firmer overnight. US equity indices are trending towards tightly mixed openings at the start of the New York session. Risk appetite was heightened on Tuesday after some concern on Monday about the unwinding of 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.

US economic data due for release on Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, the monthly house price index, the S & P-Core-Logic indexes and the consumer confidence index. consumers.

Technically, April gold futures bears have a strong overall technical advantage in the short term and gained more power this week. The next bull price target is to produce an April futures close above the strong resistance at $ 1,775.00. 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 $ 1,700.00 and then an overnight high of $ 1,712.60. The first support is seen at $ 1680.00 and then at $ 1673.30. Wyckoff Market Rating: 2.5

Bearish silver futures have the overall technical advantage in the short term and have gained momentum this week. 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 $ 26.00 an ounce. The next lower price target for the bears is to close prices below solid support at the January low of $ 24.095. First resistance is seen at the overnight high of $ 24.77 and then at $ 25.00. The next support is seen at $ 24.095 and then at $ 24.00. Wyckoff Market Rating: 3.0.