Price pauses in gold, silver amid bull runs
(Kitco News) – Gold and silver prices are just a bit weaker in early U.S. trading Monday, as the bulls take a breather amid their recent strong upside price assault. The charts for both metals remain bullish to suggest still more price upside in the near term. April gold was last down $1.90 at $2,183.70. May silver was last down $0.024 at $24.525.
Asian and European stock markets were mixed in quieter overnight trading. U.S. stock index futures are set to open slightly lower when the New York day session begins and are not far below last week’s record highs as the bull run in the U.S. stock market rolls on.
The key outside markets today see the U.S. dollar index near steady. Nymex crude oil prices are weaker and trading around $78.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching 4.077%.
U.S. economic data due for release Monday includes the employment trends index. Arguably the U.S. data point of the week comes on Tuesday: the consumer price index report for February, seen coming in at up 3.7%, year-on-year, versus a rise of 3.9% seen in the January report.
Technically, the gold futures bulls have the solid overall near-term technical advantage and have momentum. A steep four-week-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in April futures above solid resistance at $2,250.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,100.00. First resistance is seen at today’s high of $2,195.50 and then at the contract high of $2,203.00. First support is seen at $2,175.00 and then at Friday’s low of $2,161.20. Wyckoff’s Market Rating: 8.5.
The silver bulls have the overall near-term technical advantage and have momentum. Silver bulls’ next upside price objective is closing May futures prices above solid technical resistance at $26.00. The next downside price objective for the bears is closing prices below solid support at $23.50. First resistance is seen at last week’s high of $24.86 and then at $25.00. Next support is seen at $24.225 and then at $24.00. Wyckoff’s Market Rating: 6.5.
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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
