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(Kitco News) – Gold and silver rose in early US trading on Friday, with gold reaching a 1.5-year high of $2027.80 and silver hitting an eight-month high of $26.66. The all-time high of Comex gold futures was set in August 2020 at $2063.00. Demand for a safe haven emerges this week amid the intensifying war between Russia and Ukraine. April gold last rose $23.30 to $2019.30 and May Comex silver last rose $0.665 to $26.40 an ounce.
Global equity markets were mixed the day before and US stocks are pointing to a mixed open as the New York afternoon session kicks off. The Nasdaq stock index has moved into bear market territory, down 20% from its high. The Dow Jones Industrial Average is now in correction territory, 10% below its high. Risk aversion remains elevated amid the Russo-Ukrainian war.
With the Russo-Ukrainian war escalating, as well as uncertainty and unrest in the market, and with both countries being major producers and exporters of commodities, it would seem that prices in commodity futures markets still have more room for growth. , even as many commodity markets are at multi-year and even record highs. However, there are some early signs that the explosive growth in commodities may be close to peaking. Remember that futures markets incorporate all known and expected fundamentals into their price structure. The copper market, which traders call “Doctor Copper” because of the red industrial metal’s worldwide importance and its history of predicting price action in other markets, including stocks, soared to a record high above $5 a pound on Monday, only to quickly reverse course. and close sharply down during the day. This price action resulted in a large bearish “key reversal” down on the daily histogram. This is one technical key to the price top in the market. Additionally, crude oil prices jumped sharply on Monday, only to retreat from their daily high, suggesting bulls in this key market may have run out of gas. Neither I nor anyone else knows when major market tops occur. However, this market watcher of nearly 40 years has seen his fair share of major market tops, and they occur in situations similar to those many commodity markets are experiencing right now. Most major market tops occur when traders and investors least expect them, and many times before the actual bullish fundamental event that triggered the bullish market move ever fully plays out.
The price of nickel more than doubled to $100,000 a tonne before curtailing gains and eventually suspending trading on the London Metal Exchange. Reports say the LME has settled margin requirements at Monday’s closing price of $48,000 and is considering adjusting or canceling trades made between that point and the suspension.
In key foreign markets, crude oil prices on the NYMEX rose and traded around $122.50 a barrel. The record high for crude oil prices on the NYMEX was recorded in July 2008 and amounted to $147.27 per barrel. The US dollar index is weakening today after hitting a 21-month high on Monday. The yield on the benchmark 10-year US Treasury is currently 1.851%.
The US economic data, due Tuesday, includes the weekly Johnson Redbook and chain store sales reports, the NFIB Small Business Index, the US Trade Report, the IDB/TIPP Economic Optimism Index and the monthly wholesale trade report.
![Live 24 hour gold chart [Kitco Inc.]](https://news.google.com/images/live/gold.gif?0.2924175530478188 "Strong rise in gold prices as the price approaches a record high 1"){kind=small}
From a technical standpoint, bulls in April gold futures have a strong short-term technical edge. On the daily histogram, prices are in an uptrend five weeks ago. The next target for the bulls is to close April futures above major resistance at an all-time high of $2063.00. The bears’ next short-term target is to drive futures prices below the reliable technical support at $1,950.00. The first resistance is seen at the overnight high at $2027.80 and then at $2050.00. First support is seen at $2000.00 and then at today’s low at $1985.80. Wyckoff Market Rating: 9.0
![Live 24-hour silver chart [ Kitco Inc. ]](https://news.google.com/images/live/silver.gif "Strong rise in gold prices as the price approaches a record high 2")
May silver bulls have a solid short-term technical edge. On the daily histogram, prices are in an uptrend five weeks ago. The next target for the silver bulls is to close above the solid technical resistance at $27.00 an ounce. The next downside target for the bears is to close below the firm support at $24.00. The first resistance is seen at the overnight high at $26.66 and then at $27.00. The next support is seen at $26.00 and then the overnight low of $25.55. Wyckoff market rating: 7.5.
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