Gold, Silver Prices Up On Bargain Hunting, Weaker Greenback
(Kitco News) - Gold and silver prices are moderately higher in early morning trading action Monday. Buyers of the safe-haven metals are overlooking the recent lack of risk aversion in the marketplace and focusing instead on the bullish aspect of the lower U.S. dollar index today. Perceived bargain-buying after last week’s sell off is also featured to start the new trading week. April Comex gold futures were last up $8.80 an ounce at $1,339.20. March Comex silver was last up $0.151 at $16.635 an ounce.
World stock markets were mostly higher overnight. U.S. stock indexes are pointed to higher openings when the New York day session begins. The U.S. stock index bulls have some momentum on their side and have re-established near-term price uptrends on the daily charts. That’s an underlying bearish element for the precious metals.
Traders are anxiously awaiting new Federal Reserve Chairman Jerome Powell’s first speech to the U.S. House of Representatives on Capitol Hill on Tuesday. He speaks to the U.S. Senate on Thursday.
The other key outside market on Monday morning sees Nymex crude oil prices slightly lower and trading above $63.00 a barrel.
U.S. economic data due for release Monday includes the Chicago Fed national activity index, new residential sales, and the Texas manufacturing outlook survey.
Technically, April gold futures bulls have the overall near-term technical advantage and regained some momentum today. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the January high of $1,370.50. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the February low of $1,309.00. First resistance is seen at today’s high of $1,342.90 and then at $1,350.00. First support is seen at today’s low of $1,328.00 and then at last week’s low of $1,322.90. Wyckoff's Market Rating: 6.0
March silver futures bears have the slight overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $17.00 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 $16.72 and then at $16.95. Next support is seen at today’s low of $16.44 and then at last week’s low of $16.34. Wyckoff's Market Rating: 4.5.