Price pressure on gold, silver after reported upbeat remarks by Putin

NEW YORK (Mar 11)  Gold and silver prices are solidly lower in early U.S. trading Friday, as trader/investor risk appetite has up-ticked to end the trading week. Reports just out are saying Russian President Putin has made comments that the talks with Ukraine are seeing positive shifts. April gold futures were last down $30.30 at $1,970.00 and May Comex silver was last down $0.376 at $25.885 an ounce.

Global stocks markets were mixed but mostly firmer overnight. The U.S. stock indexes are pointed toward solidly higher openings when the New York day session begins. Putin’s comments did surprise the marketplace. However, many market watchers wonder how Putin can back off from his current aggression against Ukraine and still save face with Russians, who have a history of being very unkind to leaders who perform poorly in wars. Meantime, Russia said it will send thousands of fighters from the Middle East to join its forces in Ukraine. Two cities in western Ukraine were hit by airstrikes overnight. President Biden is lobbying Congress to end normal relations with Russia, which would put Russia in with the likes of North Korea and Iran.

The U.S. Senate overnight passed a one-year, $1.5 trillion federal funding bill, ending the risk of a U.S. government shutdown. The legislation included $13.5 billion in humanitarian and security funds for Ukraine.

The key outside markets see Nymex crude oil prices weaker and trading around $105.00 a barrel. Crude prices have backed way off from this week’s 14-year highs. That suggests oil prices may have put in at least near-term tops. The U.S. dollar index is a bit weaker today. The benchmark U.S. 10-year Treasury note is presently yielding 1.98%. U.S. Treasury yields are on the rise this week. It’s been said that bond traders are the smartest traders around. This week’s rising U.S. Treasury yields hint that bond market traders sense peak anxiety from a markets perspective, regarding the Russia-Ukraine war, is now past and that attention is turning more toward rising inflation.

U.S. economic data due for release Friday is light and includes the University of Michigan consumer sentiment survey.

Technically, the April gold futures bulls have the firm overall near-term technical advantage. However, they appear to have run out of gas to suggest at least a near-term market top is in place. Prices are in a five-week-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in April futures above major resistance at the record high of $2,078.80. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,925.00. First resistance is seen at $2,000.00 and then at the overnight high of $2,004.00. First support is seen at the overnight low of $1,965.40 and then at $1,950.00. Wyckoff's Market Rating: 7.5

May silver futures bulls have the firm overall near-term technical advantage. Prices are in a five-week-old uptrend on the daily bar chart. However, the bulls now appear to be short-term exhausted. Silver bulls' next upside price objective is closing prices above solid technical resistance at this week’s high of $27.495 an ounce. The next downside price objective for the bears is closing prices below solid support at $24.00. First resistance is seen at $26.50 and then at today’s high of $26.345. Next support is seen at this week’s low of $25.465 and then at $25.00.

KITCO