(Kitco News) - Gold prices are near steady and silver just slightly lower in midday U.S. trading Wednesday, after solid losses posted Tuesday following hawkish comments from the U.S. central bank chairman. The precious metals market bulls were forced to be satisfied today with both markets just pausing. April gold was last up $0.50 at $1,820.30 and May silver was down $0.084 at $20.115, after hitting a four-month low earlier.
Today’s U.S. ADP national employment report for February came in slightly hotter than expected, at up 242,000 jobs compared to a consensus forecast rise of 205,000. Traders and investors are looking forward to the February U.S. employment situation report from the Labor Department on Friday morning. The key non-farm payrolls component of the report is expected to show a rise of 225,000 jobs, following a mammoth rise of 517,000 in the January report.
Global stock markets were mixed but mostly lower overnight. U.S. stock indexes are mixed at midday.
The marketplace today was still digesting Fed Chairman Jerome Powell’s testimony Tuesday morning on U.S. monetary policy to a Senate committee. Powell leaned hawkish, which was not surprising to many, but the marketplace did deem his remarks as being more hawkish than the central bank chief had been in the recent past. Powell said the Fed will likely have to keep U.S. interest rates higher for longer to win the war against problematic price inflation. He said recent stronger U.S. economic data has likely rolled back some of the softening the U.S. had seen on the inflation front the past few months. The U.S. dollar rallied sharply on Powell’s remarks and hit a three-month high. The U.S. stock indexes sold off on his remarks, as did crude oil. Powell spoke to a House of Representatives panel today but made no new observations and markets were not significantly impacted.
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Silver price to rise 1,000% as gold hits $5k by 2027, governments to "debase" their currencies - Rob McEwen |
The yield on the benchmark U.S. 10-year Treasury note is presently fetching 3.972%. The 2-year note yield pushed above 5% for the first time since 2007, presently fetching 5.038%. The 2-year – 10-year note spread is presently the widest in decades. Historically, an inverted Treasury yield curve has portended tough U.S. economic times ahead.
The key outside markets today see the U.S. dollar index slightly higher and hit another three-month high overnight. Nymex crude oil futures prices are down and trading around $76.50 a barrel.
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, April gold futures bears have gained the slight overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the March high of $1,864.40. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at today’s high of $1,828.70 and then at $1,835.00. First support is seen at the February low of $1,810.80 and then at $1,800.00. Wyckoff's Market Rating: 4.5
![Live 24 hours silver chart [ Kitco Inc. ]](https://www.kitco.com/images/live/silver.gif)
May silver futures prices hit a four-month low today. The silver bears have the firm overall near-term technical advantage. Prices are in a steep five-week-old downtrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $21.50. The next downside price objective for the bears is closing prices below solid support at $19.00. First resistance is seen at $20.50 and then at $21.00. Next support is seen at today’s low of $19.955 and then at $19.00. Wyckoff's Market Rating: 3.0.
March N.Y. copper closed up 685 points at 405.50 cents today. Prices closed nearer the session high today. The copper bulls have the slight overall near-term technical advantage but trading has been choppy and sideways recently. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the February high of 423.70 cents. The next downside price objective for the bears is closing prices below solid technical support at 380.00 cents. First resistance is seen at 410.00 cents and then at 415.00 cents. First support is seen at 400.00 cents and then at the February low of 393.45 cents and then at 390.00 cents. Wyckoff's Market Rating: 5.5.
