(Kitco News) - Gold prices were trading just below unchanged at midday Thursday, and were near their daily lows as the U.S. stock market had regained much of its sharp morning losses. At one point the Dow Jones Industrial average was down around 1,000 points Thursday morning, which pushed the gold market to gains of over $20.00 on the day. Look for the gold market to continue to react to the machinations of the U.S. and global stock markets. April gold futures were last down $2.90 an ounce at $1,640.60. March Comex silver prices were last down $0.159 at $17.675 an ounce.
Global stock markets were lower overnight as the coronavirus outbreak continues to spread and trader and investor fears continue to rise. The outbreak will significantly impact global growth for at least the first quarter of 2020, and maybe beyond. Prognosticators are trying to gauge the ultimate impact of the illness on the world economy but nobody really has a clue on the matter. That uncertainty is what is roiling the markets at present, and will likely continue to do so for the near term.
President Trump held a news conference Wednesday evening and named Vice President Pence as heading up the U.S. effort to combat the illness and its spread. Trump also said he thinks U.S. equities are selling off because of the socialist-leaning Democratic presidential candidates.
The yield on the benchmark U.S. Treasury 10-year note on Thursday fell to a record low of 1.29%. There’s an old market adage that “the bond market knows and stock traders are schmoes.” U.S. Treasury yields started falling last week, before the big sell off in the global stock markets. What the U.S. Treasury market is telling traders and investors now is that serious economic damage will be inflicted by the coronavirus—both at home and abroad, including the possibility of a U.S. recession on the horizon.
Most market watchers now expect future easing of monetary policies by the major central banks of the world, to stimulate their economies and help ward off the negative economic impacts of the coronavirus outbreak.
Nymex crude oil prices lower, at a 14-month low, and trading around $47.60 a barrel in early trading Thursday. The U.S. dollar index is trading solidly down today, on ideas of Fed rate cuts and President Trump hinting again Wednesday he does not like a strong dollar.
Technically, April gold futures bulls still have the solid 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 $1,662.50 and then at Tuesday’s high of $1,666.70. First support is seen at this week’s low of $1,626.60 and then at $1,619.60. Wyckoff's Market Rating: 7.5.
![Live 24 hours silver chart [ Kitco Inc. ]](https://www.kitco.com/images/live/silver.gif)
March silver futures closed prices were near the session low at midday today. The silver bulls and bears are on a level overall near-term technical playing field but the bears have the momentum. 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 the January low of $17.28. First resistance is seen at $18.00 and then at Wednesday’s high of $18.17. Next support is seen at $17.50 and then at $17.28. Wyckoff's Market Rating: 5.0.
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2924175530478188){kind=small}
March N.Y. copper closed down 5 points at 257.25 cents today. Prices closed nearer the session high today after hitting a three-week low early on. 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 254.30 cents and then at today’s low of 252.20 cents. Wyckoff's Market Rating: 2.5.
