(Kitco News) - Gold and silver prices are higher in early U.S. futures trading Thursday. Risk aversion is keener today as the coronavirus outbreak continues to play out in the marketplace. April gold futures were last up $9.20 an ounce at $1,652.10. May Comex silver prices were last up $0.089 at $17.335 an ounce.
Global stock markets were mostly firmer overnight, following the big gains in the U.S. stock market on Wednesday. However, U.S. stock indexes are pointed toward sharply lower openings when the New York day session begins. Look for another active day in U.S. markets.
The U.S. stock market euphoria over Democratic U.S. presidential candidate Joe Biden’s solid performance at the “Super Tuesday” primaries has quickly faded Thursday as focus again turns to the uncertainty regarding the Covid-19, or coronavirus, outbreak that continues to spread worldwide and especially outside of China. This week, major corporations have suspended air travel for their employees and cancelled some conventions and conferences. There are reports of some U.S. stores running out of basic consumer goods. The state of California has declared a state of emergency due to the coronavirus illness there. On the economic front several major central banks this week have eased their monetary policies to combat the negative economic consequences of the Covid-19 outbreak. More central banks are likely to take action soon, including the European Central Bank.
Recent history shows that some days traders and investors are less concerned about the coronavirus outbreak, and then the next day they are more concerned. Look for continued vacillating markets as the Covid-19 situation plays out. It’s now looking more likely that the event will not be a short-term situation, but instead one that will play out over several months, or longer.
The benchmark U.S. 10-year Treasury note yield earlier this week fell below 1.0% to a record low, and remains below that level. This has prompted keen concern among long-term market watchers that a U.S. and /or global economic recession looms, including the prospect of debilitating consumer and commercial price deflation.
All of the above are bearish for stocks and most commodities, and bullish for safe-haven assets like gold, the U.S. dollar and U.S. Treasuries. An examination of a chart of the Goldman Sachs Commodity index paints a dour picture for the prospects for the raw commodity sector.
The key outside markets today see Nymex crude oil prices firmer and trading around $47.00 a barrel in early trading. Reports said the OPEC oil cartel is close to agreement on a collective oil-production cut to try to stem the slide in oil prices. The U.S. dollar index is trading down today.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the Challenger job-cuts report, revised productivity and costs, manufacturers’ shipments and inventories, and monthly retail chain store sales.
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, the gold bulls have the solid overall near-term technical advantage amid a 3.5-month-old price uptrend on the daily chart. A drop below last week’s low of $1,564.00 would negate the price uptrend. Bulls’ next upside price objective is to produce a close in April futures above solid resistance at the February high of $1,691.70. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,564.00. First resistance is seen at $1,662.50 and then at $1,666.70. First support is seen at the overnight low of $1,635.60 and then at $1,625.00. Wyckoff's Market Rating: 7.5
![Live 24 hours silver chart [ Kitco Inc. ]](https://www.kitco.com/images/live/silver.gif)
March silver futures bulls and bears are on a level overall near-term technical playing field. Silver bulls' next upside price 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: 5.0.
