Gold weakens as US stocks fall; US bond market sends signal – Kitco NEWS

Important for many markets, including gold, the yield on the 10-year US Treasury benchmark fell to just under 0.6% this week, after surpassing 1.0% at the start of the week last. Falling Treasury yields suggest that US bond traders (arguably the smartest traders of all) are looking for more serious problems on the horizon, also suggesting that most markets have not yet taken over account in their pricing structures for the ultimate economic damage to Covid-19. Whether this scenario is bullish or bearish for gold remains to be seen. The demand for a safe haven for gold remains strong, but the paralyzed global economy also suggests a drop in demand for gold by consumers.

The national employment report released this morning by ADP for March saw a decrease of 37,000 jobs, which was better than most forecasts. However, traders ignore this report and will likely do the same with the job report released Friday morning by the Department of Labor, as neither reflects the current unemployment rate during the US shutdown induced by coronavirus. The most important report of the week will be Thursday’s jobless claims weekly report, which is more up to date.

On this first day of April and the second quarter, global equity markets were mainly down on Wednesday. Traders and investors are darker on Tuesday after President Trump’s daily update, Covid-19, on Tuesday afternoon, in which he made a darker assessment of the situation. Trump has said that 140,000 to 240,000 Americans will die from the disease, and that is if citizens continue to distance themselves and isolate themselves. He said it was going to be “very rough” in the next two weeks because the coronavirus should peak between mid-April and the end of April. The best scenario seems to be that the US economy will restart in May. The Governor of New York also gave an austere press conference at noon Wednesday.

In overnight news, China obtained more positive economic data on Wednesday, while the Caixin manufacturing purchasing managers index (PMI) rose in March to 50.1 from 40.3 in February. Reading above 50.0 suggests growth in the sector. This is positive for the economies so hard hit by the coronavirus, as the Chinese economy has been able to recover very quickly. However, more and more market and media observers are questioning the reliability of statistics from China, particularly those suggesting how quickly its economy has recovered from the coronavirus epidemic.

The euro area manufacturing PMI for March stood at 44.5, which was in line with market expectations and compares to February’s reading of 49.2.

Major external markets are now seeing Nymex crude oil prices drop and trade around $ 20.25 per barrel after hitting an 18-year low at $ 19.27 per barrel on Monday. According to respected energy analysts, the short-term downside potential of Nymex crude oil is still much higher, against a backdrop of oversupply and shock demand. The US dollar index is solidly higher in the early afternoon, as the bulls have a strong week.

Technically, the bullish futures on June gold still have the overall technical advantage in the short term, but are fading this week and will soon have to show new power to maintain their graphic advantage. The next bullish target for short-term gold bull prices is to produce near-solid technical resistance at $ 1.625. Bears’ next short-term price cut target pushes prices under solid technical support to $ 1,550.00. The first resistance is observed at $ 1,600.00, then at today’s high at $ 1,612.40. The first support is seen at the lowest of $ 1,576.00 and then at $ 1,565.00. Wyckoff Market Rating: 6.0

That silver term bears have the overall technical advantage in the short term. Silver Bulls’ next bullish price target is to close prices above solid technical resistance at $ 16.00 an ounce. The next target for price cuts for bears is to close prices under solid support at the March low of $ 11.64. The first resistance is observed this week’s high at $ 14.71, then at $ 15.00. The next support is seen at the low of $ 13,945 Monday, then at $ 13.50. Wyckoff Market Assessment: 4.0.

In May, copper closed down 560 points to 217.25 cents today. Prices closed at the bottom of the session today. Copper bears have the overall short-term technical advantage. A bearish flag pattern has formed on the daily bar chart. The next target for higher copper bullish prices is to push and close prices above solid technical resistance at 230.00 cents. The next target for lower bear prices is to close prices under strong technical support at the March low of 197.25 cents. The first resistance is observed at the high of 222.20 cents today, then at the high of this week of 224.80 cents. The first support is seen at the lowest of 215.45 cents today, then this week’s lowest of 213.95 cents. Wyckoff Market Assessment: 3.0.