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Gold, Silver See Corrective Pullbacks From Good Gains Tuesday

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(Kitco News) - Gold and silver prices are modestly weaker in early U.S. trading Wednesday. The metals are seeing a minor downside correction following the good gains scored on Wednesday. April Comex gold futures were last down $4.00 an ounce at $1,331.20. May Comex silver was last down $0.134 at $16.65 an ounce.

The just-released ADP national employment report for February showed a rise of 235,000. Forecasters expected the ADP number to come in at up 200,000. Gold prices dipped just a bit on the news. This report suggests Friday’s more important jobs report from the U.S. Department of Labor will come in strong, too.

World stock markets were mostly lower overnight. U.S. stock indexes are pointed toward solidly lower openings when the New York day session begins. The stock, financial and currency markets are somewhat spooked after White House chief economist Gary Kohn announced his resignation amid the increasingly protectionist rhetoric coming from U.S. President Donald Trump.

The resignation of Kohn suggests Trump is pushing forward with his plan to slap tariffs on imported aluminum and steel. Kohn’s departure heightened the speculation that there is keen turmoil presently in the White House west wing.

In overnight news, the European Union warned the U.S. that it will retaliate to any U.S. trade tariffs levied against the EU.

The Euro zone reported its fourth-quarter gross domestic product at up 0.6% from the third quarter and up 2.7%, year-on-year. Those numbers were right in line with market expectations.

The key outside markets on Wednesday morning see the U.S. dollar index lower. Nymex crude oil prices are lower and trading just above $62.00 a barrel.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the ADP national employment report, revised productivity and costs, the international trade in goods and services report, the Federal Reserve's beige book, consumer installment credit, and the weekly DOE liquid energy stocks report.

Live 24 hours gold chart [Kitco Inc.]

Technically, April gold futures bulls have the slight overall near-term technical advantage. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,350.00. 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 $1,342.00 and then at $1,350.00. First support is seen at this week’s low of $1,318.30 and then at $1,309.00. Wyckoff's Market Rating: 5.5

Live 24 hours silver chart [ Kitco Inc. ]

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 this week’s high of $16.895 and then at $17.00. Next support is seen at $16.50 and then at this week’s low of $16.37. Wyckoff's Market Rating: 4.0.

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.

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