Gold Prices Continue To Slide Amid Risk-On Trading Attitudes
(Kitco News) - Gold prices are again moderately lower in early U.S. trading Monday. Growing risk appetite in the world marketplace at present is prompting selling pressure in the safe-haven metals. U.S. and world stock markets have made solid rebounds from the sharp losses seen in January and February. April Comex gold futures were last down $6.20 an ounce at $1,317.80. May Comex silver was last down $0.123 at $16.485 an ounce.
World stock markets were mostly higher overnight, following the lead of the U.S. stock market on Friday, which rallied in the wake of an upbeat U.S. employment report that showed healthy jobs gains amid inflation that is not deemed problematic. U.S. stock indexes are pointed toward higher openings when the New York day session begins.
The marketplace is still digesting last week’s U.S. implementation of trade tariffs on steel and aluminum. The European Union wants to talk to the U.S. on the matter, while China warned it will retaliate for the U.S. tariffs. This situation could flare up further, which could dent world stock market bullishness.
The key “outside markets” on Monday morning see the U.S. dollar index slightly higher and Nymex crude oil prices weaker.
U.S. economic data due for release Monday includes the employment trends index and the monthly Treasury budget statement.
Technically, April gold futures bulls and bears are on a level overall near-term technical playing field. 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 $1,325.00 and then at $1,330.00. First support is seen at last week’s low of $1,313.20 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 $16.635 and then at $16.75. Next support is seen at last week’s low of $16.33 and then at the March low of $16.16. Wyckoff's Market Rating: 4.0.