Gold and silver prices showed modest declines, nearing their session lows in midday U.S. trading. The safe-haven metals faced headwinds from solid gains in U.S. stock indexes and an overall risk-on trading day, contributing to the downward pressure. Additionally, chart-based selling was observed as the near-term technical outlook for both gold and silver tilted slightly toward the bears.
As of midday, April gold was down $4.30 at $2,030.30, while March silver was down $0.114 at $22.77. Early mild gains in gold were erased when the U.S. dollar index rebounded from overnight losses and moved above unchanged for the day.
Asian and European stock markets showed mixed but mostly firmer results in overnight trading. Japan’s Nikkei stock index hit a record high for the first time in 34 years. U.S. stock index futures were higher and near daily highs, with the S&P 500 futures and Dow Jones Industrial average reaching new record highs.
The U.S. dollar index saw slight gains, and Nymex crude oil prices were higher, trading around $78.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note was fetching 4.325%.
Technically, April gold futures bears had the slight overall near-term technical advantage, with prices in a 2.5-month-old downtrend on the daily bar chart. Bullish momentum would require a close above solid resistance at the February high of $2,083.20. On the downside, bears’ next near-term price objective was pushing futures prices below solid technical support at the November low of $1,975.10.
March silver futures bears also had the slight overall near-term technical advantage. However, a nine-week-old downtrend on the daily bar chart was negated, suggesting a market bottom was in place. The next upside price objective for silver bulls was closing prices above solid technical resistance at $24.50, while bears’ next downside price objective was closing prices below solid support at the February low of $21.975.
March N.Y. copper closed up 135 points at 388.85 cents on the day, with the slight overall near-term technical advantage held by copper bulls. The next upside price objective for the bulls was pushing and closing prices above solid technical resistance at the January high of 394.70 cents, while bears’ next downside price objective was closing prices below solid technical support at the February low of 365.50 cents.