(Kitco News) - Gold and silver prices are solidly up in midday U.S. futures trading Monday, but off of their overnight highs, as the coronavirus pandemic has traders and investors worldwide unnerved and seeking out safe-haven metals. Gold scored another seven-year high Monday, while silver futures prices were poised to close at a five-month high close. The negative effects of the coronavirus outbreak on the global economy appear to be increasing. April gold futures hit a new contract high overnight and were last up $29.30 an ounce at $1,678.10. March Comex silver prices were last up $0.355 at $18.885 an ounce.
Markets worldwide are getting rocked by a marked increase over the weekend in trader and investor fears amid the still-growing coronavirus outbreak. Gold is up around $40 an ounce and at a seven-year high, U.S. Treasuries are rallying sharply, the U.S. dollar index is up, crude oil prices are sharply down and much of the rest of the raw commodity sector is feeling selling pressure. Asian and European shares were down overnight. U.S. stock indexes are sharply lower at midday, with the DJIA down over 1,000 points.
While the human toll from the coronavirus (covid-19) is growing, the likely economic toll also is expanding. What is gripping markets is the keen uncertainty of how this situation will eventually play out. There is no consensus at all regarding the outcome.
China recorded the total number of afflicted at over 77,000 and over 2,350 dead. The illness is also spreading in South Korea. Northern Italy has some towns quarantined after the covid-19 illness was discovered spreading in that region, including three deaths.
Manufacturing indexes from the major world economies are showing the negative effects of the covid-19 outbreak. U.S. companies are also mentioning the illness as impacting their bottom lines when earnings reports are released. The global marketplace has quickly realized early this year the keen importance of China’s economy in the world supply chain, which has been significantly disrupted.
The key outside markets today see crude oil prices sharply lower and trading around $50.50 a barrel. Meantime, the U.S. dollar index is weaker and not far below last week’s nearly three-year high.
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, April gold futures prices closed near mid-range and hit another seven-year high today. The bulls have the strong overall near-term technical advantage. A 3.5-month-old price uptrend is in place on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,700.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the January high of $1,619.60. First resistance is seen at today’s high of $1,691.70 and then at $1,700.00. First support is seen at $1,670.00 and then at $1,660.00. Wyckoff's Market Rating: 9.0.
![Live 24 hours silver chart [ Kitco Inc. ]](https://www.kitco.com/images/live/silver.gif)
March silver futures prices closed near the session high and closed at a five-month high close today. The silver bulls have the firm overall near-term technical advantage and have restarted a price uptrend on the daily chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $19.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $18.00. First resistance is seen at the January high of $18.895 and then at $19.00. Next support is seen at today’s low of $18.555 and then at $18.335. Wyckoff's Market Rating: 6.5.
March N.Y. copper closed down 310 points at 257.75 cents today. Prices closed near mid-range today. The copper bears have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 265.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the February low of 248.75 cents. First resistance is seen at 260 cents and then at the February high of 263.25 cents. First support is seen at today’s low of 255.85 cents and then at 254.00 cents. Wyckoff's Market Rating: 3.0.
