Gold price near steady as traders await Russia’s next move
Gold and silver prices are not straying too far from unchanged levels on the day, in early U.S. trading Tuesday. Gold prices hit an eight-month high overnight and silver a four-week high as risk aversion is elevated and geopolitics are on the front burner of the marketplace. Gold and silver bulls are feeling confident at present, amid safe-haven demand being stronger and the charts being friendly. April gold futures were last up $0.40 at $1,900.40 and March Comex silver was last up $0.058 at $24.06 an ounce.
Traders came back from a three-day U.S. markets-holiday weekend and see that Russia has sent troops into breakaway parts of Ukraine, with Russian President Putin calling it a “peace-keeping” mission. The U.S. and the West have slapped new sanctions on Russia, including Germany halting certification on a key oil pipeline into Russia. The U.S. says Russia now has 190,000 troops at the Ukrainian border. This matter is likely to remain on the front burner of the marketplace for some time to come. “Markets are on war footing” was a news headline from Barrons today.
Global stock markets were mostly lower overnight. The U.S. stock indexes are pointed toward slightly weaker openings when the New York day session begins.
The key outside markets today see Nymex crude oil prices sharply higher, hitting a 7.5-year high of $96.00 a barrel and presently trading around $93.75 a barrel. The U.S. dollar index is a bit weaker early today. The benchmark U.S. 10-year Treasury note is presently yielding 1.925%. U.S. Treasury yields are falling early this week, on safe-haven demand for U.S. debt.
U.S. economic data due for release Tuesday includes the monthly house price index, the quarterly house price index, the U.S. flash manufacturing and services purchasing managers indexes, the Richmond Fed business survey and the consumer confidence index.
Technically, the April gold futures bulls have a solid overall near-term technical advantage. Prices are trending up on the daily bar chart. Bulls’ next upside price objective is to produce a close in April futures 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 the overnight high of $1,918.30 and then at $1,922.40. First support is seen at the overnight low of $1,889.70 and then at $1,882.50.
March silver futures bulls have the overall near-term technical advantage and are working on a price uptrend on the daily bar 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 the overnight high of $24.325 and then at $24.50. Next support is seen at the overnight low of $23.71 and then at $23.44.
