March 1, 2024

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Sharp decline in gold and silver prices amid China's fears of "Covid"

Sharp decline in gold and silver prices amid China’s fears of “Covid”

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(Kitco . News) – He went And silver prices It fell sharply in early US trade on Monday, with gold hitting a nearly four-week low and silver at a nine-week low. There are growing concerns about demand for primary commodities as cases of Covid in China, the world’s second-largest economy, are spreading rapidly across the country. Gold futures for June are down $35.90 at $1,898.00 Silver in May Comex was last down $0.729 at $23.53 an ounce.

Most global stock markets fell overnight, led by the biggest drop in Chinese stocks in two years. US stock indices are pointing to lower openings when the New York daily session begins. There are growing concerns about the economic toll of China’s strict non-proliferation policy, as lockdowns extend to Beijing. The Chinese yuan fell to its lowest level against the US dollar since late 2020. The outbreak of the Covid virus that shut down a large part of Shanghai appeared to worsen over the weekend. China has ordered mandatory testing in a Beijing neighborhood and locked down some areas of the capital, which has a population of more than 20 million. This situation is expected to further disrupt the already strained global supply chains, and potentially drive up the already problematic inflation rates.

The Russo-Ukrainian war that shows no signs of de-escalation continues to dampen the risk appetite of traders and investors.

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Major overseas markets are seeing a sharp drop in the NYMEX Crude Oil futures price today and are trading around $97.75 a barrel. The US dollar index rose and hit a two-year high early today. The 10-year US Treasury yield currently fetches 2.833%.

US economic data due for release on Monday includes the Chicago Fed’s National Activity Index and the Texas Manufacturing Outlook Survey.

Technically, the June gold futures bulls have a slight general technical advantage in the near term but they are fading fast and need to show new strength soon to maintain it. The next bullish price target for the bulls is to achieve a close in the April futures contract above the strong resistance at $1.950.00. The next bearish price target for speculators in the near term is pushing futures prices below strong technical support at the March low of $1,893.20. First resistance was seen at $1,915.00, then $1,925.00. First support is seen at the March low of $1,893.20 and then at $1,875.00. Wyckoff Market Rating: 5.5

24 hour silver chart [ Kitco Inc. ]

May silver futures bears gained the overall technical advantage in the near term amid the recent sharp drop in prices. The next bullish price target for the silver bulls is to close prices above the strong technical resistance at $25.00 an ounce. The next target for the bears downtrend price is a price close below the strong support level at $23.00. The first resistance is seen at the overnight high at $24.00 and then the overnight high at $24.24. Next support is seen at today’s low at $23.42 then $23.00. Wyckoff Market Rating: 4.0.

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Not giving an opinion: The opinions expressed in this article are those of the author and may not reflect the views of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; However, Kitco Metals Inc. cannot. Nor does the author guarantee this accuracy. This article is for informational purposes only. It is not a solicitation to conduct any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. does not accept The author of this article will be liable for losses and/or damages arising from the use of this publication.