Editor’s Note: With so much market volatility, keep up with the daily news! In just a few minutes, get caught up in our quick recap of today’s top news and expert insights. Login here!
(Kitco News) – Gold and silver prices are higher in early US trade Friday on short covering in futures markets after recent selling pressure and amid support from a lower US Dollar Index and a fall in US Treasury yields this day. Gold was last up $11.60 in April to $1,851.90 and silver was last up $0.274 in May to $21.17.
Global equity markets were mostly firmer overnight. US stock indexes point to firmer opens as the New York session begins. US stock indices are in the beginning of a downtrend on the daily bar chart.
The general market has grappled of late with the realization that troubled global inflation is likely to last longer than traders and investors originally expected or hoped. This notion has sapped risk appetite among traders and investors of late. A headline in the Wall Street Journal today reads: “World economy is doing well; This is bad news for central bankers.”
On the overnight news, the governor of China’s central bank has signaled that the bank will ease monetary policy by lowering banks’ reserve requirement ratio to support the Chinese economy.
Meanwhile, the euro zone received mixed inflation news as its PPI fell 2.8% in January but rose 15.0% yoy. Those numbers were less hot than expected.
Major outside markets are seeing a weaker US Dollar Index this morning. Nymex crude oil futures prices are slightly down, trading around $78.00 a barrel. The benchmark 10-year Treasury yield is currently 4.007%.
US economic data to be released on Friday includes the US Services Purchasing Managers’ Index (PMI), the ISM Business Services report and the Global Services PMI.
![Live 24 hour gold chart [Kitco Inc.]](https://www.spamchronicles.com/wp-content/uploads/2023/03/Gold-Gains-Silver-Short-Covering-Friendly-Outside-Markets.2924175530478188.gif "Gold Gains, Silver Short-Covering, Friendly Outside Markets 3"){kind=small}
Technically, the gold futures bulls and bears are back on an even technical playing field in the near term. A downtrend on the daily bar chart has been negated. The bulls’ next upside target is an April close above the solid resistance at $1,900.00. Bears’ next short-term downside target is to push futures prices below the solid technical support at $1,800.00. Initial resistance is seen at last week’s high of $1,856.40 and then $1,870.00. Initial support is seen at the overnight low of $1,842.00 and then $1,825.00. Wyckoff’s market rating: 5.0.
![Live 24 hour silver chart [ Kitco Inc. ]](https://www.spamchronicles.com/wp-content/uploads/2023/03/Gold-Gains-Silver-Short-Covering-Friendly-Outside-Markets.gif "Gold Gains, Silver Short-Covering, Friendly Outside Markets 4")
The silver bears have the short-term overall technical advantage. Prices are in a steep downtrend on the daily bar chart. The next upside target for silver bulls is the May futures close above solid technical resistance at $22.25. The next downside target for the bears is a close below the solid support at $19.00. Initial resistance is seen at this week’s high of $21.285 and then $21.52. The next support is seen at Thursday’s low at $20.76 and then this week’s low at $20.505. Wyckoff’s market rating: 4.0.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of the author Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not an invitation to exchange goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article assume no responsibility for any loss and/or damage resulting from the use of this publication.