Gold Sees Corrective Bounce
(Kitco News) - Gold prices are modestly higher in early U.S. trading Tuesday, on a mild rebound following recent selling pressure. There is still not much risk aversion in the marketplace at present, which continues to limit buying interest in the safe-haven gold and silver markets. June Comex gold futures were last up $3.70 an ounce at $1,327.70. May Comex silver was last up $0.038 at $16.625 an ounce.
World stock markets were mostly higher overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. A more robust risk appetite among traders and investors has benefitted the equities markets recently.
There was no major, fresh fundamental news overnight. U.S. President Trump and French President Macron meet today to discuss whether to continue the Iran nuclear deal reached in 2015, or to pull out of it and reinstate sanctions on Iran. The deal is up for renewal in early May.
The key “outside markets” on Tuesday morning see the U.S. dollar index trading slightly lower after hitting a more-than-three-month high overnight. Meantime, Nymex crude oil prices are slightly firmer and trading near $69.00 a barrel. Oil prices are not far below last week’s a 3.5-year high.
U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and Goldman Sachs retail sales reports, the S&P/Case-Shiller home price index, the U.S. monthly house price index, new residential sales, the consumer confidence index and the Richmond Fed business survey.
Technically, June gold bulls still have the overall near-term technical advantage. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the January high of $1,375.50. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the March low of $1,309.30. First resistance is seen at this week’s high of $1,337.60 and then at $1,345.00. First support is the overnight low of seen at the April low of $1,322.60 and then at $1,312.40. Wyckoff's Market Rating: 6.0
May silver futures bulls and bears are on a level overall near-term technical playing field. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the April high of $17.36 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the March low of $16.10. First resistance is seen at $16.75 and then at $16.89. Next support is seen at $16.50 and then at $16.25. Wyckoff's Market Rating: 5.0.