Gold and silver see price advances as crude oil continues climb

NEW YORK (Mar 23)  Gold and silver prices are higher in early U.S. trading Wednesday, lifted in part by a rise in crude oil prices and a lower U.S. stock market at mid-week. April gold futures were last up $9.20 at $1,930.60 and May Comex silver was last up $0.266 at $25.17 an ounce.

Global stocks markets were mostly higher overnight. The U.S. stock indexes are pointed toward weaker openings when the New York day session begins. The Russia-Ukraine war continues but from a markets perspective not much has changed recently. President Biden Thursday meets with NATO and EU leaders to discuss Russia's invasion of Ukraine. The two-day summit will be held at NATO headquarters in Brussels. Sanctions continue to bite Russia's economy and its ability to make war. Bloomberg reports that "for decades, global finance firms eagerly catered to Russian companies, billionaires and the government. In perhaps the harshest and fastest exclusion in living memory of a major industrialized economy, the past few weeks have been a frantic dash to understand and implement sanctions on Russia that are being continually updated by the U.S., U.K. and the EU."

The other element very near the front burner of the marketplace is inflation worries. Global bond market yields have been rising sharply, with U.S. Treasury yields nearing three-year highs. The U.S. 2-year and 10-year yield curve is very close to inverting, which would begin to suggest a U.S. economic recession is coming.

The key outside markets see Nymex crude oil prices higher and trading around $112.25 a barrel. Oil prices are rising sharply again on ideas the European Union is moving closer to banning oil imports from Russia. The U.S. dollar index is firmer today. The benchmark U.S. 10-year Treasury note is presently yielding 2.375%.  

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, new residential sales and the weekly DOE liquid energy stocks report.

Technically, the April gold futures bulls have the overall near-term technical advantage. However, a bearish pennant pattern has formed on the daily bar chart. Bulls' next upside price objective is to produce a close in April futures above major resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,850.00. First resistance is seen at this week's high of $1,941.80 and then at $1,950.00. First support is seen at this week's low of $1,909.80 and then at $1,900.00.

KITCO