Happy Fat Tuesday everyone! Mardi Gras, a holiday celebrated around the world in anticipation of the Christian season of Lent, is in full swing today (3rd Tuesday of February). It’s a time for indulgence and revelry before the solemn period of sacrifice and penance that precedes Easter. While the holiday is best known for its parades, costumes, and partying, it also historically was a time for settling debts and making final transactions, including the exchange of precious metals before Ash Wednesday.
The carnival party has been riding high for the gold futures bears, as they grasp a slim near term technical advantage, and the prices are in a fledgling downtrend. The gold bulls are still in the game, and their next target is to close April futures above the solid resistance of $1,881.60, which was last week’s high. On the other hand, the bears are looking to push futures prices below the solid technical support of $1,800.00, but we won’t let that stop the celebration! The first resistance is seen at the overnight high of $1,856.40, and then at $1,870.90, while the first support is visible at the overnight low of $1,839.00 and the February low of $1,827.70. Currently, Gold Futures sit at $1843.3
The silver market is also in a festive mood, with the bears have the upper hand in the near-term technical outlook. The prices are in a downtrend, but that won’t stop the silver bulls from aiming for their next upside price objective, which is to close March futures prices above the solid technical resistance level of $22.64. The next downside price is reached by closing prices below the firm support level of $20.00. The first resistance is seen at the overnight high of $21.905, followed by $22.00, while the next support level is visible at $21.50, and then at the February low of $21.155. Currently silver futures sit at $21.885
Looking towards the equities market, the global stock markets took a hit overnight and continued to be suppressed with US trading trading lower and the S&P breaking support, currently down 1.62% to $4013. Traders and investors are playing it safe with an elevated risk aversion as President Biden made a surprise visit to the Ukraine and promised $500 million more in aid to the war-torn nation. Coupled with Russia suspending participation in the last remaining nuclear arms control treaty with the US, the latest move has certainly triggered a few alarm bells, and the U.S.-China-Russia relations continue to hit new lows, further fueling the market’s apprehension.
The bulls are still in the game, and with solid resistance and support levels, we can still celebrate and look forward to the markets reaching back into the $1,900. So, let’s raise a glass to the precious metals market and keep the festive mood going! As commented on previously, now is a great time to look to acquisition strategies such as dollar-cost-averaging.
All Updates and Market info are provided as a third party analysis and do not necessarily reflect the explicit views of GoldClub Direct LLC. and should not be construed as financial advice.