Gold and silver prices continued to fall in early Asian trading on Tuesday. Spot gold fell below the 2,300 mark. For the first time since April 5, it fell more than 1% during the day. As of press release, it was $2306.02 per ounce.
Gold trading is very active. COMEX's most active gold futures contract instantly traded 1,408 lots within one minute from 10:06 to 10:07 Beijing time on April 23, with a total trading contract value of US$327 million; 09:52 - 09:53 The trading market instantly traded 1,869 lots within one minute, with a total trading contract value of US$432 million; 09:46 -- 09:47 The trading market instantly traded 788 lots within one minute, with a total trading contract value of US$183 million; 09:42 -- 09:43 1951 lots, with a total transaction contract value of US$452 million.
Spot silver fell below $27 per ounce, the first time since April 8. COMEX's most active silver futures contract instantly traded 433 lots within one minute from 09:38 to 09:39 Beijing time on April 23, with a total trading contract value of US$59 million; from 09:54 to 09:55 within one minute, the trading market instantly traded 559 lots, with a total trading contract value of US$75 million.
As the difficult situation in the Middle East eased, the price of gold fell sharply and recovered last week's gains. As Jim Wyckoff of Kitco News said, the fall in gold prices may be due to a return in profits, while the US dollar also strengthened slightly. From a technical perspective, the sharp drop in gold prices formed a “bearish swallowed up” chart pattern, opening the door for a retracement. If the price falls below $2,300, it could fall to the March 21 high of $2,222. On the upside, the first resistance level for the gold price will be $2,400, followed by Friday's high of $2,417, which is expected to reach a record high of $2,431 before breaking through the latter.
Fxstreet analysts said bears regained confidence after pushing the silver price below the $27.57 support level on Monday. Technical indicators are pointing downward, close to 4 hours but not yet at the oversold level, and the price trend is below the 50 and 100 EMAs. Using Elliott wave analysis, silver appears to be in the fourth corrective wave of a five-wave bullish cycle. The 38.2% Fibonacci retracement level of $26.85 is a common target for correction. If the closing price falls below this point, look to the April 5 low of $26.30. On the upside, silver needs to return to its previous support level of $27.60 to shift the upward focus to $27.95 and the mid-April high of $29.80.
Federal Reserve officials have entered a period of silence. In addition to economic data, the market will also pay attention to this week's series of US Treasury auctions, which may test investors' appetites. Richard Grace, a senior monetary analyst and international economist at ITC Markets, said in the report: “The easing of tension in the Middle East has shown some profit rebound. Given the recent surge in gold prices, it is likely that there has been some tactical short selling.”
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