More solid price pressure on gold, silver; bulls need to step up

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Gold and silver prices are sharply lower and hit nearly three-week lows in early U.S. trading Tuesday. Profit-taking pressure and weak long liquidation in the futures markets are featured in both precious metals early this week. June gold was last down $30.50 at $2,316.20. May silver was last down $0.245 at $27.00. Shorter-term futures traders are being forced to liquidate their losing long positions, while fortunate futures traders that still hold a profit are taking those profits and getting out of the gold and silver futures markets. The gold and silver bulls have lost their upside momentum, but both markets remain overall firmly technically bullish. If the sharp selling pressure continues deeper into this week, near-term technical damage would likely be inflicted to suggest near-term market tops, if not major market tops, are in place. Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed to toward slightly higher openings when the New York day session begins. The Japanese yen continues to depreciate against the U.S. dollar. The U.S. dollar index is slightly up. Nymex crude oil prices are near steady and trading around $81.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is fetching 4.63%. U.S. economic data due for release Tuesday includes the Johnson Redbook retail sales report, the U.S. flash manufacturing and services purchasing managers indexes (PMI), the Richmond Fed business survey, and new residential sales. The gold futures bulls have the firm overall near-term technical advantage, with the next upside price objective at $2,400.00. The silver bulls have the firm overall near-term technical advantage, with the next upside price objective at $28.795. The gold market is seeing solid selling pressure after failing to hold its ground at $2,400 an ounce. The precious metal remains in a solid position to rally by year-end. Gold investors and traders witnessed the largest single-day drop in gold futures in over three years on Monday. Crypto prices trended higher on Monday after the Bitcoin halving was successfully implemented on Friday while stocks bounced back from their worst week in 2024. Mount Erebus produces 1,022 ounces of gold per year, worth over $121 million at current spot prices. U.S. presidential candidate Robert Kennedy Jr. told a crowd in Michigan that if elected president, he would put the entire U.S. budget on blockchain for all to see. Commodity analysts have been warning that gold’s rally to record highs above $2,400 created dangerously overbought market conditions. In the absence of strong demand outside of China, gold prices are due for a correction, but a strong rebound in Indian fabrication restocking should support silver prices this year. G Mining Ventures and Reunion Gold reached a definitive agreement to combine the two companies, creating an intermediate gold producer.

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https://www.kitco.com/news/article/2024-04-23/more-solid-price-pressure-gold-silver-bulls-need-step