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(Kitco News) – Gold prices trade strongly and reach a 7.5-year high near $ 1,750 in US mid-term trading on Wednesday, on demand for safe haven in a global economy that has tipped into recession and perhaps into depression. More frightening US economic data released today, as well as a huge Federal Reserve stimulus package announced, are helping to boost precious metals. Gold futures for the last time increased for the last time from $ 61.30 an ounce to $ 1,745.90. Prices for Comex silver were up from $ 0.705 to $ 15.91 an ounce.
The Federal Reserve announced on Thursday morning another $ 2.3 trillion stimulus / loan package to support states, counties and cities ravaged by the Covid-19 pandemic. This overshadows previous stimulus packages from the Fed and the federal government, which a US secretary of the Treasury several years ago considered a “bazooka.” Today’s hit was the atomic bomb in the bazooka years ago. It seems inconceivable that this gargantuan economic and monetary incentive from the United States government cannot lead to rising and even problematic price inflation along the way.
The latest US weekly jobless claims report showed an increase of 6.6 million, which is more than expected from an increase of 5 million and follows the increase of more than 6 million last week and more by 3 million the previous week.
Global stock markets were tightly mixed in night trading. The US stock indices are significantly higher in the trading session of New York at noon. It is the last trading day of the week for most markets, before the Good Friday holidays and the Easter weekend. The market hikes had a good week. US stock indexes have seen an upward trend in short-term prices, suggesting that at least short-term lows are in place. As the Covid-19 pandemic continues to kill thousands of people worldwide, the rate of spread of the disease appears to be slowing. The question among traders and investors now is whether the infection curve has flattened out when governments restart their paralyzed economies. May 1 is probably the most optimistic date for a partial recovery in the US economy.
Also today is an OPEC (plus Russia) teleconference meeting to discuss significant reductions in crude oil production. The latest reports indicate that Russia is planning a big cut. Many observers of the oil market are looking for a collective cut of 10 to 15 million barrels per day. A Texas oil regulator said his state could also cut oil production. Speculation that major reductions in global oil production will be approved by major producers rallied crude oil futures markets last week. Nymex crude oil prices are slightly higher and are trading around $ 25.25 a barrel. Last week, prices fell below $ 20.
Other major markets are seeing the US dollar index drop at noon. The yield on 10-year US Treasuries is trading around 0.71% on Thursday.
Technically, the bulls on gold in June have the strong overall technical advantage in the short term and have gained more power today. More increase is likely in the short term. The next bullish objective for short-term gold bull prices is to produce near-solid technical resistance at $ 1,800.00. Bears’ next short-term price cut target pushes prices under solid technical support to $ 1,670.00. The first resistance is observed at $ 1,750.00 then at $ 1,775.00. The first support is seen at $ 1,725.00 then at $ 1,700.00. Wyckoff Market Assessment: 9.0
The silver futures in May peaked four weeks today and the bulls have the short-term technical advantage and have gained momentum today. Prices are in a three week uptrend on the daily bar chart. Silver Bulls’ next bullish price target is to close prices above solid technical resistance at $ 17.00 an ounce. The next price break goal for bears is to close prices below solid support at $ 14.50. The first resistance is observed at $ 16.00 then at $ 16.25. The next support is seen at $ 15.50 then at the lowest of $ 15.175 today. Wyckoff market note: 6.5.
May Copper closed 50 points lower at 225.55 cents today. Prices closed at the bottom of the session today. Copper bulls and bears are on an overall technical level in the short term. A downward price trend has been canceled on the daily chart and now an upward trend is starting. The next target for higher copper bullish prices is to push and close prices above solid technical resistance at 240.00 cents. The next target for lower bear prices is to close prices with solid technical support at 215.00 cents. The first resistance is observed at the current high of 228.85 cents and then at this week’s high of 231.75 cents. The first support is seen at 221.85 then at this week’s low at 218.20 cents. Wyckoff Market Assessment: 5.0.
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