(Kitco News) – Gold and silver prices are sharply up and hit in noon U.S. futures buying and selling Tuesday, on safe-haven demand because the financial fallout from the coronavirus outbreak is beginning to intensify. Gold hit a five-week excessive and pushed again above the psychologically vital $1,600,00 stage Tuesday, whereas silver hit a three-week excessive and moved again above $18.00. February gold futures have been final up $17.30 an oz. at 1,603.80. March Comex silver prices were last up $0.416 at $18.15 an ounce.
Asian and European shares were mostly lower overnight. U.S. stock indexes are lower at midday. Risk aversion is keener in the marketplace on this first trading day of the week for U.S. traders and investors, following the President’s Day holiday Monday.
The global marketplace is downbeat following news that Apple has issued a warning saying its first-quarter sales will be lower than initially expected due to the Coronavirus outbreak that has slowed or halted the delivery of Apple’s needed supplies coming from China. The rate of daily spread of the illness has slowed to the lowest since January, reports said. Over 1,800 people have died in China from the illness. The global supply chain has been significantly impacted, as seen by the Apple sales-miss news. Reports also said over 730 million in China are still effectively quarantined, suggesting supply-chain disruptions will continue as the world’s second-largest economy is presently crippled.
Importantly, among market watchers, analysts, health officials and other prognosticators, there is no consensus at all on where the coronavirus outbreak goes from here, regarding both new cases contracted by the public and the impact on China’s and the rest of the global economy. This high uncertainty is likely to continue to support demand for safe-haven assets like the precious metals.
In other overnight news, the closely watched German ZEW economic expectations index dropped sharply in February, to 8.7 versus 26.7 in January. The coronavirus was blamed for most of the big decline in February.
The key outside markets today see crude oil costs decrease and buying and selling round $51.75 a barrel. Meantime, the U.S. dollar index is barely up and hit one other multi-month excessive in the present day.
Technically, April gold futures costs have been nearer the session excessive at noon in the present day. The bulls have the strong general near-term technical benefit and gained extra energy in the present day. A 3-month-old worth uptrend has been restarted on the every day bar chart. Gold bulls’ subsequent upside near-term worth breakout goal is to supply a detailed above strong technical resistance on the January excessive of $1,619.60. Bears’ subsequent near-term draw back worth breakout goal is pushing costs beneath strong technical help at $1,565.00. First resistance is seen at in the present day’s excessive of $1,608.20 after which at $1,619.60. First help is seen at $1,590.00 after which at in the present day’s low of $1,581.80. Wyckoff’s Market Ranking: 7.5
March silver futures costs have been nearer the session excessive at noon in the present day. The silver bulls have gained the general near-term technical benefit. A four-week-old worth downtrend on the every day bar chart was negated in the present day. Silver bulls’ subsequent upside worth breakout goal is closing costs above strong technical resistance on the January excessive of $18.895 an oz.. The following draw back worth breakout goal for the bears is closing costs beneath strong help on the January low of $17.28. First resistance is seen at in the present day’s excessive of $18.205 and then at $18.375. Subsequent help is seen at $18.00 after which at in the present day’s low of $17.67. Wyckoff’s Market Ranking: 6.0.
March N.Y. copper closed up 50 factors at 260.45 cents in the present day. Costs closed nearer the session low after hitting a three-week excessive early on in the present day. The copper bears nonetheless have the general near-term technical benefit. Nonetheless, latest upside worth motion suggests a market backside is in place. Copper bulls’ subsequent upside worth goal is pushing and shutting costs above strong technical resistance at 270.00 cents. The following draw back worth goal for the bears is closing costs beneath strong technical help on the February low of 248.75 cents. First resistance is seen at in the present day’s excessive of 263.25 cents after which at 265.00 cents. First help is seen at 258.00 cents after which at 255.55 cents. Wyckoff’s Market Ranking: 3.0.
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