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(Kitco News) – Gold and silver prices fell sharply at the start of trading in the United States on Monday, with gold hitting a nearly four-week low and silver hitting a nine-week low. There are growing concerns about demand for raw materials as the Covid case in China, the world’s second-largest economy, spreads rapidly across the country. June gold futures last fell $ 35.90 to $ 1,898.00, and Comex’s May silver fell $ 0.729 to $ 23.53 an ounce.
Global stock markets were mostly lower overnight, driven by the biggest drop in Chinese stocks in two years. US stock indexes are aiming for lower openings when the daily session in New York begins. There are growing concerns about the economic consequences of Covid’s tough Chinese zero policy as the blockade spreads to Beijing. The Chinese yuan fell to its lowest level against the US dollar since the end of 2020. The Covid outbreak, which closed much of Shanghai, seems to have worsened over the weekend. China has ordered mandatory tests in a Beijing neighborhood and closed some areas of the capital with more than 20 million people. This situation is expected to further disrupt already tense global supply chains and possibly lead to even higher already problematic inflation.
The Russia-Ukraine war, which shows no signs of de-escalation, continues to undermine traders ‘and investors’ appetites for risk.
Major foreign markets are seeing Nymex crude futures fall sharply today to around $ 97.75 a barrel. The US dollar index is higher and peaked two years earlier today. The yield on 10-year US government securities currently reaches 2.833%.
Economic data for the United States, due to be released Monday, includes the Chicago National Reserve’s National Activity Index and the Texas Production Outlook Survey.
Technically, June gold futures have a slight overall technical advantage in the short term, but are fading rapidly and need to show fresh strength soon to maintain it. The Bulls’ next uptrend goal is to create a futures close in April above solid resistance at $ 1,950.00. The Bears’ next short-term goal is to push futures prices under solid technical support at the March low of $ 1.893.20. The first resistance was observed at $ 1,915.00 and then at $ 1,925.00. The first support was observed at the bottom of March of $ 1,893.20 and then at $ 1,875.00. Wyckoff market rating: 5.5
May silver futures gained the overall short-term technical advantage amid the recent sharp drop in prices. The next goal to increase the price of silver bulls is to close prices above solid technical resistance at $ 25.00 per ounce. The next downward target for bears is the closing price under solid support at $ 23.00. The first resistance is observed at the highest value for one night of $ 24.00 and then at the highest value for one night of $ 24.24. The next support is observed at today’s bottom of $ 23.42 and then at $ 23.00. Wyckoff market rating: 4.0.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. This is not an invitation to make any exchange of goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article is not responsible for any loss and / or damage resulting from the use of this publication.
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