(Kitco News) – Gold futures prices are down and hit a 2.5-month low in early U.S. trading Wednesday. The gold and silver markets are seeing limited buying interest in a world that is presently void of a major “international incident” and in which global stock markets are mostly robust. Rising government bond yields are another negative for gold and silver. April gold futures were last down $8.10 at $1,790.80 and March Comex silver was last down $0.105 at $27.22 an ounce.
Global stock markets were mostly firmer overnight. Mainland China markets remain closed for the Lunar New Year holiday but will open Thursday. U.S. stock indexes are pointed toward steady to weaker openings and new record highs when the New York day session begins. There remains little risk aversion in the marketplace, what with the pandemic loosening its grip on many major countries and economies expected to rebound strongly as this year progresses.
It’s a very busy day for U.S. economic data Wednesday, including the weekly MBA mortgage applications survey, the weekly Johnson Redbook and Goldman Sachs retail sales reports, retail sales, the producer price index, industrial production and capacity utilization, manufacturing and trade inventories, the NAHB housing market index and the FOMC minutes.
Bitcoin hit another record high overnight and traded well above $50,000. The keener investor interest in Bitcoin and other crypto currencies could be taking away some of the allure for historical safe-haven assets gold and silver.
The platinum futures market this week hit a 6.5-year high. An email dispatch from the broker SP Angel said the following: “Europe takes the lead in the race for hydrogen in a move which will likely drive platinum prices higher. Most of the world’s planned hydrogen projects and the biggest chunk of related investments this decade are expected to be in Europe. The EU has made hydrogen a key plank in its aim to eliminate greenhouse gas emissions by 2050, with plans to install 40GW of electrolyzers this decade. Of the 228 hydrogen projects announced globally, 55% of them (126) are in Europe. Hydrogen Council members–including Royal Dutch Shell Plc, BMW, Microsoft Corp and Sinopec–plan to increase hydrogen investments six-fold through to 2025, from 2019 levels. Platinum catalysts for reforming hydrogen and for fuel cells are likely to see increasing demand from the new drive to produce and use hydrogen.”
The key “outside markets” today see the U.S. dollar index trading higher. Meantime, Nymex crude oil futures prices are higher and trading around $61.00 a barrel. The benchmark 10-year U.S. Treasury note yield is currently fetching around 1.3%–a 12-month high.
Technically, the February gold futures bears have the firm overall near-term technical advantage amid a five-week-old price downtrend in place on the daily chart. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at this week’s high of $1,827.10. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the November low of $1,771.30. First resistance is seen at $1,800.00 and then at $1,804.70. First support is seen at the overnight low of $1,781.80 and then at $1,771.30. Wyckoff’s Market Rating: 3.5
March silver futures bulls have the overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the February high of $30.35 an ounce. The next downside price objective for the bears is closing prices below solid support at $26.00. First resistance is seen at the overnight high of $27.475 and then at $28.00. Next support is seen at $27.00 and then at last week’s low of $26.75. Wyckoff’s Market Rating: 6.5.
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