(Kitco News) - Gold and silver prices are firmer in midday U.S. trading Wednesday, as bullish traders stepped in to buy the early price declines. Gold prices Tuesday hit an eight-month high and silver today notched a four-week high. Risk aversion is still elevated at mid-week, and that's also supportive for the safe-haven metals markets. April gold futures were last up $3.50 at $1,911.00 and March Comex silver was last up $0.234 at $24.535 an ounce.
On the front burner of the marketplace remains the Russian incursion into Ukraine. The U.S. and other nations have slapped sanctions on Russia, but it appears the West has no intention of military action against Russia. That has somewhat assuaged the marketplace, for now. It's still a dicey situation, as a military mistake by either side could significantly escalate the conflict. The major question on traders' and investors' minds is whether the uncertainty/anxiety factor has peaked, from a markets perspective. Remember that markets many times overreact to major geopolitical events in the early stages of those events. Traders tend to factor into market prices a worst-case scenario, only to see that scenario typically not occur. Still, in this particular geopolitical situation another major "shoe could drop," such as a full-blown Russia invasion of Ukraine, to further destabilize markets.
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Gold price looks past 'mild' Russia sanctions, gears up for more uncertainty |
Global stock markets were mostly firmer overnight. The U.S. stock indexes are mixed to weaker at midday. The S&P 500 stock index is being termed in "correction" territory, meaning a 10% decline from its recent record high.
In overnight news, the Euro zone consumer price index for January came in at up 0.3% from December and up 5.1%, year-on-year. Those numbers were right in line with market expectations.
The key outside markets today see Nymex crude oil prices near steady and trading around $92.00 a barrel. The U.S. dollar index is a bit firmer at midday today. The benchmark U.S. 10-year Treasury note is presently yielding 1.977%.
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, April gold futures prices are poised to close at an eight-month high close today. Bulls have the solid overall near-term technical advantage. Prices are in a steep uptrend on the daily bar chart. Bulls' next upside price objective is to produce a close above solid resistance at the May 2021 high of $1,922.40. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,850.00. First resistance is seen at this week's high of $1,918.30 and then at $1,922.40. First support is seen at $1,900.00 and then at this week's low of $1,889.70. Wyckoff's Market Rating: 8.5
![Live 24 hours silver chart [ Kitco Inc. ]](https://www.kitco.com/images/live/silver.gif)
March silver futures prices hit another four-week high today. The silver bulls have the overall near-term technical advantage. Bulls are in an price uptrend on the daily chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the January high of $24.755 an ounce. The next downside price objective for the bears is closing prices below solid support at $22.50. First resistance is seen at $24.755 and then at $25.00. Next support is seen at today's low of $24.05 and then at this week's low of $23.71. Wyckoff's Market Rating: 6.5.
March N.Y. copper closed down 220 points at 448.80 cents today. Prices closed nearer the session low today. The copper bulls have the overall near-term technical advantage. Prices are in a choppy, two-month-old uptrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the February high of 470.85 cents. The next downside price objective for the bears is closing prices below solid technical support at the January low of 428.20 cents. First resistance is seen at today's high of 454.55 cents and then at last week's high of 458.95. First support is seen at last week's low of 444.40 cents and then at 440.00 cents. Wyckoff's Market Rating: 6.0.
