(Kitco News) – Gold and silver prices are sharply greater in noon U.S. futures buying and selling Tuesday, with gold now gaining again all of Friday’s huge losses. Save-haven demand is featured right now because the U.S. Federal Reserve made the dangerous and stunning transfer of reducing the important thing U.S. rate of interest by 0.5%. The U.S. inventory market didn’t take the information effectively and the inventory indexes had been solidly at noon. April gold futures had been final up $51.20 an oz. at $1,645.90. March Comex silver prices were last up $0.476 at $17.215 an ounce.
The Federal Reserve lowered its benchmark interest rate—the Fed funds rate—by 0.5% to counter the negative economic aspects of the coronavirus outbreak. The rate now stands at 1.0 to 1.25%. The aggressive move by the Fed initially popped the U.S. stock indexes sharply higher, but they come off those highs and hit new daily lows. The move by the U.S. central bank is very risky, as it might incite more fear in a marketplace that is already on edge. At first blush, the move by the Fed is not being deemed as reassuring for traders and investors, and that is what popped gold prices sharply higher. Federal Reserve Chairman Jerome Powell held a press conference after the announcement to explain the Fed’s move. He said there is “evolving risk” to the U.S. and global economies. Look for other major central banks to follow with their own monetary policy easing. The central banks of Australia earlier today cut its key interest rate by 50 basis points, too.
While the Covid-19, or coronavirus, outbreak appears to have slowed its rate of spread in China, the illness rate is growing outside of China, including South Korea, Italy and other countries. More cases are being discovered in the U.S. The marketplace is more focused on what the major economies of the world are doing to prevent economic damage. Many analysts are now saying the outbreak’s impact on global economies will be serious but the duration of the impact will be short. Powell was cautious at his press conference on putting a timetable on the progression of the outbreak and how long it might impact global economies.
Many are wondering if Monday’s big gains in the U.S. stock indexes point to market bottoms being in place. Maybe. A more solid clue that near-term market bottoms are in place in the stock indexes (or any other market that has been beaten down the past few weeks) would be two very strong up-days in a row, or a bullish weekly high close on a Friday.
The yield on the benchmark U.S. Treasury 10-year note hit a record low today of 1.023%, signaling safe-haven demand and also hinting at a global economic recession.
The key outside markets today see Nymex crude oil costs greater and buying and selling round $47.30 a barrel in early buying and selling. The U.S. dollar index is buying and selling weaker right now and hit a six-week low.
Technically, April gold had been nearer the session excessive at noon right now and have gotten again all of final Friday’s large losses. The bulls have the stable total near-term technical benefit and have stored alive a 3.5-month-old worth uptrend in place on the day by day bar chart. Gold bulls’ subsequent upside near-term worth breakout goal is to provide a detailed above stable technical resistance on the February excessive of $1,691.70. Bears’ subsequent near-term draw back worth breakout goal is pushing costs beneath stable technical assist finally week’s low of $1,564.00. First resistance is seen at $1,662.50 after which on the $1,675.00. First assist is seen at $1,625.00 after which at $1,600.00. Wyckoff’s Market Ranking: 7.5
Could silver futures had been nearer the session excessive at noon. The silver bears nonetheless have the slight total near-term technical benefit. Silver bulls’ subsequent upside worth breakout goal is closing costs above stable technical resistance at $18.00 an oz.. The subsequent draw back worth breakout goal for the bears is closing costs beneath stable assist at $16.00. First resistance is seen at right now’s excessive of $17.48 after which at $17.75. Subsequent assist is seen at $17.00 after which at right now’s low of $16.665. Wyckoff’s Market Ranking: 4.5.
Could N.Y. copper closed down 230 factors at 257.20 cents right now. Costs closed nearer the session low right now. The copper bears have the agency total near-term technical benefit. Copper bulls’ subsequent upside worth goal is pushing and closing costs above stable technical resistance at 270.00 cents. The subsequent draw back worth goal for the bears is closing costs beneath stable technical assist on the February low of 249.45 cents. First resistance is seen at 260.00 cents after which at right now’s excessive of 262.5 0cents. First assist is seen at right now’s low of 254.65 cents after which at 252.50 cents. Wyckoff’s Market Ranking: 2.5.
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