(Kitco News) - Gold prices are solidly lower in midday U.S. futures trading Tuesday, on a corrective pullback after hitting a seven-year high above $1,700.00 Monday. While risk aversion and anxiety on Tuesday are not quite as high as seen on Monday, the U.S. stock market is still very wobbly. However, on this day the gold and silver futures market traders decided to focus on bearish aspect of the very strong rebound in the U.S. dollar index after it hit a 13-month low on Monday. April gold futures were last down $21.50 an ounce at $1,654.10. May Comex silver prices were last down $0.194 at $16.860 an ounce.
Global stock markets rebounded Tuesday following Monday’s rout. However, the U.S. stock market has faded after opening sharply higher today. Traders and investors are still wondering if Monday marked the worst of the global stock market meltdown. Or, it could be that Tuesday’s rebounds in the equities markets could be the so-called “dead-cat bounce” that occurs after major market sell offs, only to see prices continue to trend down. Of course, nobody knows for sure on the matter. However, markets that see extreme price moves during shocks to the marketplace tend to see price bottoms put in sooner rather than later.
President Trump and his administration have been meeting to discuss financial relief for U.S. businesses and workers impacted by the coronavirus outbreak. An announcement was thought to be likely to occur as soon as today. However, reports say that likely won’t happen now. Look for the major central banks of the world to continue to provide monetary stimulus to their economies in the coming days and weeks.
The general public’s fear of Covid-19 appears to be continuing to grow. The U.S. Center for Disease control has just issued a warning for Americans over 60 years old to stay home and not travel, if at all possible. It’s a bit surprising that U.S. stores have not seen more consumer hoarding of basic goods, although anecdotal reports do say cleaning supplies are running low. Reports now say the entire country of Italy is quarantined. Television news is showing pictures of empty airports in Asia cities.
The benchmark 10-year U.S. Treasury note saw its yield rise above 0.7% Tuesday after dropping to a record low of 0.387% Monday. That’s a positive sign of a marketplace that is not quite so fearful.
Nymex crude oil prices are solidly higher and trading around $33.75 a barrel after careening to a four-year low on Monday. Russia and Saudi Arabia are in an all-out oil price war that does not look likely to end anytime soon. Veteran energy market watchers know that both Russia and Saudi Arabia hate the North American oil “frackers” that have dramatically changed the global energy landscape the past 10 years. Both countries could be planning to pump as much oil as they can in the coming months, which would very likely bankrupt many U.S. and Canadian shale-oil-producing companies. Then, Saudi Arabia and Russia could start to close their oil spigots to drive crude prices higher again.
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, April gold futures prices were nearer the session low on a corrective pullback from recent gains. The bulls still have the solid overall near-term technical advantage. A choppy four-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 this week’s seven-year high of $1,704.30. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,625.00. First resistance is seen at $1,665.00 and then at today’s high of $1,681.30. First support is seen at $1,640.00 and then at $1,630.00. Wyckoff's Market Rating: 7.5
![Live 24 hours silver chart [ Kitco Inc. ]](https://www.kitco.com/images/live/silver.gif)
May silver futures closed nearer the session low 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 today’s high of $17.20 and then at this week’s high of $17.615. Next support is seen at this week’s low of $16.55 and then at the February low of $16.40. Wyckoff's Market Rating: 4.0.
May N.Y. copper closed up 140 points at 252.50 cents today. Prices closed near mid-range today and saw tepid short covering after hitting a three-year low Monday. The copper bears have solid the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the February high of 263.95 cents. The next downside price objective for the bears is closing prices below solid technical support at 240.00 cents. First resistance is seen at today’s high of 256.55 cents and then at 260.00 0cents. First support is seen at today’s low of 248.35 cents and then at this week’s low of 245.65 cents. Wyckoff's Market Rating: 1.5.
