(Kitco News) Gold prices are slightly down in afternoon U.S. futures trading Wednesday, while spot gold prices are trading higher. U.S. stock indexes that are vacillating between higher and lower daily change levels are providing a bit of support to the gold market.(Spot and futures daily price changes can become significantly different during times of higher volatility in afternoon trading action, after the U.S. futures market has officially closed.) Silver prices are solidly lower on follow-through pressure from Tuesday’s sharp losses. At mid-week the bearish aspect of reduced consumer demand for the precious metals amid the potential for a slowdown in global economic growth is presently trumping the safe-haven demand aspects of the coronavirus scare. China, which is hit hardest by the outbreak, is a world leader for consumer gold demand. It can also be correctly argued the gold market is still seeing a corrective pullback from recent solid gains that pushed prices to a seven-year high earlier this week. April gold futures were last down $2.10 an ounce at $1,647.70. Spot gold was trading up $11.80 at $1,647.00. March Comex silver prices were last down $0.276 at $17.91 an ounce.
Overseas stock markets were lower Wednesday as the coronavirus outbreak and its expected human toll and negative world economic fallout continue to intensify. There is no consensus on how or when this situation will wind up playing out. That suggests turmoil in the markets will continue in varying degrees until some kind of end-game for the matter is expected by the majority of market watchers. U.S. stock indexes are modestly up at midday in tentative trading. The DJIA on Monday and Tuesday saw its largest two-day drop in history, points-wise. The S&P 500 futures hit a three-month low overnight.
The U.S. Center for Disease Control officials at a press conference on Tuesday afternoon said of the outbreak: “This might be bad.” The CDC said the Covid-10 illness is going to spread in the U.S. The outbreak continues to spread in Asia and Europe.
In a sign of the keen trader and investor anxiety in the global marketplace at present, the yield on the benchmark U.S. Treasury 10-year note on Tuesday fell to a record low close of 1.328%. On Wednesday the yield traded as low as 1.312%. Gold is near steady Wednesday after falling sharply Tuesday. The big drop in gold prices Tuesday could be tied to notions of less consumer demand for the metal as global economic growth is dinged by the coronavirus outbreak. China, where the illness has hit hardest, is a leading consumer of gold.
The key outside markets today see Nymex crude oil prices lower, at a nearly 14-month low, and trading around $49.00 a barrel. Brent crude is also trading near a 14-month low. Meantime, the U.S. dollar index is higher today.
Financial and currency markets this week are pricing in expected future easing of monetary policies by the major central banks of the world, as traders reckon the coronavirus, or covid-19, illness will prompt the central banks to stimulate their economies to help ward off the negative economic impacts of the outbreak.
Technically, April gold futures prices closed near mid-range. The bulls still have the firm overall near-term technical advantage. A 3.5-month-old price uptrend is still 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 this week’s high of $1,691.70. 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 $1,657.10 and then at Tuesday’s high of $1,666.70. First support is seen at today’s low of $1,626.60 and then at $1,619.60. Wyckoff's Market Rating: 7.5
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2924175530478188)
March silver futures prices closed nearer the session low today on more profit taking and weak long liquidation after recent gains. The silver bulls have lost their overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the January high of $18.895 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.50. First resistance is seen at $18.00 and then at today’s high of $18.17. Next support is seen at today’s low of $17.745 and then at $17.50. Wyckoff's Market Rating: 5.0.
![Live 24 hours silver chart [ Kitco Inc. ]](https://www.kitco.com/commentaries/2020-02-07/images/goldkitcofeb7th.png)
March N.Y. copper closed down 90 points at 256.90 cents today. Prices closed nearer the session high 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 this week’s high of 259.20 cents and then at the February high of 263.25 cents. First support is seen at today’s low of 254.30 cents and then at 252.50 cents. Wyckoff's Market Rating: 2.5.
