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(Kitco News) – Gold and silver prices declined significantly in midday US trading on Monday as risk appetite of traders/investors improved slightly at the start of the trading week. In addition, crude oil prices fell sharply from a 14-year high last week, including oil on the NYMEX today fell below $100 a barrel. This puts downward pressure on much of the commodity sector. April gold last fell $24.20 to $1961.10 and May Comex silver last fell $0.785 to $25.38 an ounce.
Also negative for safe haven metals today is that there is little optimism about the de-escalation of the Russian-Ukrainian war, despite the fact that it is still raging in Ukraine. The US and China are set to hold their first high-level talks since Russia’s invasion of Ukraine. The White House said National Security Adviser Jake Sullivan will meet in Rome Monday with top Chinese diplomat and Communist Party Politburo member Yang Jiechi. US officials say Russia has turned to China for military assistance in its war with Ukraine. This suggests that Russian President Putin has faced more setbacks in the war than he expected. US officials say they have seen no evidence that Beijing has tried to circumvent sanctions against Russia. The thought is that if China and the US stand together against the war, Russia can de-escalate. Others, however, doubt that Putin will back down and show weakness. Meanwhile, Russia and Ukraine are still meeting for talks, although there have been no major breakthroughs despite some progress being made.
Global stock markets mostly rose the day before. US stock indices are trading mixed at noon, but below their daily highs.
In other news, China has locked down the major city of Shenzhen, which is a technology hub, due to the re-spread of Covid. Chinese stocks fell on the news. It also helped put some price pressure on the commodity markets to start the trading week.
The data point for the US this week will be the Fed meeting starting Tuesday morning and ending Wednesday afternoon with a statement. It is widely believed that the Fed will raise the federal funds rate by 0.25%.
In key foreign markets, crude oil prices on the NYMEX are declining and are trading near $102.00 per barrel. Crude oil prices have retreated strongly from last week’s 14-year high above $130.00. This suggests that oil prices may have reached at least short-term highs. The US dollar index is declining today. The benchmark 10-year US Treasury is currently yielding 2.115%. US Treasury yields are on the rise. Looking ahead, the UK 10-year yield is currently 1.566% and the German 10-year yield is 0.314%.
On Monday, no important US economic data was released.
![Live 24 hour gold chart [Kitco Inc.]](https://news.google.com/images/live/gold.gif?0.2924175530478188 "Gold and Silver Weaken as Crude Oil Briefly Drops Below $100 3"){kind=small}
Technically, gold bulls have an overall short-term technical advantage. On the daily histogram, prices are in an uptrend six weeks ago. However, recent price action suggests that a market top is already in place. The next target for the bulls is to close above the firm resistance at the all-time high of $2078.80. The bears’ next target in the near term is to push futures prices below the firm technical support at $1900.00. The first resistance is seen at $1,975.00 and then at today’s high of $1,994.80. First support is seen at today’s low of $1,952.00 and then at $1,935.00. Wyckoff Market Rating: 7.0
![Live 24-hour silver chart [ Kitco Inc. ]](https://news.google.com/images/live/silver.gif "Gold and Silver Weaken as Crude Oil Briefly Drops Below $100 4")
Bulls in May silver futures still have an overall short-term technical advantage. On the daily chart, prices are in an uptrend six weeks ago. The next target for the silver bulls is to close above the firm technical resistance at the March high of $27.495 an ounce. The next downside target for the bears is to close below the firm support at $24.00. The first resistance is seen at $26.00 and then at today’s high of $26.29. The next support is seen at today’s low at $25.16 and then at $25.00. Wyckoff market rating: 6.5.
New York May Copper closed 990 points down today at 452.65 cents. Today prices closed closer to the session low. Copper bulls have little overall short-term technical edge. The next target for the copper bulls is to push and close prices above the solid technical resistance at 480.00 cents. The next downside target for the bears is to close below reliable technical support at the January low of 428.80 cents. The first resistance is seen at 460.00 cents and then at 465.00 cents. First support is seen at today’s week low of 449.60 cents and then at 445.00 cents. Wyckoff market rating: 5.5.
Denial of responsibility: The views expressed in this article are those of the author and may not be those of the author. Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. This is not a call for the exchange of goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article are not liable for any loss and/or damage resulting from the use of this publication.