Gold, Silver Gain Amid Lower U.S. Dollar Index
(Kitco News) - Gold and silver prices are solidly higher in early U.S. trading Tuesday. A sell-off in the U.S. dollar index on this day is prompting renewed buying interest in the precious metals markets. A feature in the gold and silver futures markets early today is also short covering, or the buying back of previously sold (short) positions, by the shorter-term traders. An uptick in investor risk appetite today is so far not negatively impacting the safe-haven gold and silver markets. April Comex gold futures were last up $10.40 an ounce at $1,330.30. May Comex silver was last up $0.233 at $16.64 an ounce.
World stock markets were mostly higher overnight, partly on some hopes that the U.S. plans for import tariffs on steel and aluminum will be rolled back, or at least scaled way down. Several U.S. lawmakers, including the Speaker of the House, have spoken out against President Trump’s protectionist initiative that surprised the marketplace.
Also boosting investor risk appetite today is news overnight that North Korea has reportedly made an overture to South Korea regarding its possible denuclearization. Details are sketchy at this time, but the news is a positive for the world marketplace.
U.S. stock indexes are pointed toward firmer openings when the New York day session begins.
The other key outside market on Tuesday morning sees Nymex crude oil prices higher and trading just below $63.00 a barrel.
U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, manufacturers’ shipments and inventories, and the IBD/TIPP economic optimism index.
Technically, April gold futures bulls and bears are on a level overall near-term technical playing field. But a fledgling downtrend line is still in place on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at last week’s high of $1,342.90. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,300.00. First resistance is seen at today’s high of $1,331.60 and then at $1,335.00. First support is seen at today’s low of $1,320.80 and then at $1,309.00. Wyckoff's Market Rating: 5.0
May silver futures bears have the overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the February high of $17.04 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at today’s high of $16.68 and then at last week’s high of $16.785. Next support is seen at $16.50 and then at this week’s low of $16.37. Wyckoff's Market Rating: 4.0.