(Kitco News) - Gold prices are modestly weaker and silver slightly up in midday U.S. futures trading Wednesday. Gold bulls are having a very good week amid renewed safe-haven demand in a still uncertain and anxious global marketplace at mid-week. Gold bulls are showing keen resilience today amid big gains in the U.S. stock indexes that are near their daily highs at midday. April gold futures were last down $0.90 an ounce at $1,643.50. May Comex silver prices were last up $0.047 at $17.235 an ounce.
The ADP national employment report for February, released this morning, showed a rise of 183,00 jobs, which was higher than the expected rise of 155,000. Gold and silver prices did back off their modest overnight highs after that upbeat report.
Global stock markets were mixed to firmer overnight, following the big sell off in the U.S. stock market Tuesday.
The global marketplace on Wednesday was still digesting the surprise 0.5% interest rate cut delivered by the U.S. Federal Reserve on Tuesday morning. That move, at least initially, roiled the U.S. stock market and, importantly, sent the yield on the benchmark 10-year U.S. Treasury note plummeting to a record low, below 1.0%. Veteran market watchers are taking a very dim view of the drop in U.S. Treasury yields, as it is a signal of impending U.S. and/or global economic recession. It’s also suggestive of potential consumer and commercial price deflation. Deflation is the archenemy of many markets, including raw commodities.
The Bank of Canada lowered its key interest rate by 0.5%, Wednesday, following the moves by the Fed and the central bank of Australia earlier this week.
Part of the rebound in the U.S. stock market Wednesday is likely due to former U.S. Vice President Joe Biden’s very strong performance in the “Super Tuesday” Democratic presidential primaries. Biden’s solid showing dented socialist-leaning candidate Senator Bernie Sanders’ momentum. Most agree the U.S. stock market would not like a Sanders presidency.
Meantime, the Covid-19, or coronavirus, outbreak continues to spread worldwide and especially outside of China. There are anecdotal reports of consumer hoarding of basic goods in the U.S. The outbreak is being perceived by analysts and economists as seriously denting world economic growth, at least for a short period of time, or maybe not so short. More central banks are expected to soon announce they are easing their monetary policies to help thwart the negative economic impacts of the outbreak.
In other news, China’s private Caixin purchasing managers index (PMI) February showed a manufacturing reading of 40.3 versus 51.1 in January and 46.0 forecast. The Caixin services PMI was 26.5 versus 51.8 in January and 48.0 forecast. The Caixin composite PMI was 27.5 compared to 51.9 in January. Hong Kong’s Markit PMI came in at 33.1 in February, down from 46.8 in January and marked the steepest drop since at least 1998, when the survey began. The Euro zone February composite PMI was reported at a better-than-expected 52.6 versus 51.3 in January. A reading below 50.0 suggests contraction in the sector.
The key outside markets today see Nymex crude oil prices modestly higher and trading around $47.50 a barrel in early trading. The U.S. dollar index is trading up today following recent strong selling pressure.
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, April gold prices closed near mid-range today. The bulls have the solid overall near-term technical advantage and have kept alive a 3.5-month-old price uptrend 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 the February high of $1,691.70. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at last week’s low of $1,564.00. First resistance is seen at today’s high of $1,654.30 and then at the $1,672.50. First support is seen at today’s low of $1,632.60 and then at $1,625.00. Wyckoff's Market Rating: 7.0
![Live 24 hours silver chart [ Kitco Inc. ]](https://www.kitco.com/images/live/silver.gif)
May silver futures prices closed near mid-range today. The silver bears have the overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $18.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at this week’s high of $17.48 and then at $17.75. Next support is seen at $17.00 and then at Tuesday’s low of $16.665. Wyckoff's Market Rating: 4.0.
May N.Y. copper closed up 130 points at 258.55 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 249.45 cents. First resistance is seen at 260.00 cents and then at this week’s high of 262.5 0cents. First support is seen at Tuesday’s low of 254.65 cents and then at 252.50 cents. Wyckoff's Market Rating: 2.5.
