Gold Firmer As U.S. Stock Market Set For Lower Opening
(Kitco News) - Gold prices are modestly up in early U.S. trading Tuesday. Some mild safe-haven demand is featured as the U.S. stock market is set to open lower. The precious metals are also supported by a lower U.S. dollar index on this day. April Comex gold futures were last up $2.50 an ounce at $1,328.90. March Comex silver was last down $0.02 at $16.55 an ounce.
World stock markets were mixed but mostly lower overnight. Worries about rising world inflation are keeping stock market traders and investors edgy. They also still worry about high daily volatility returning to the stock markets. U.S. stock indexes are pointing toward lower openings when the New York day session begins.
The key “outside markets” on Tuesday morning see the U.S. dollar index lower as the bears have regained downside momentum early this week. Meantime, Nymex crude oil prices are near steady. The International Energy Agency on Tuesday warned the big increase in U.S. shale oil production will weigh down oil prices this year and glut the world oil market.
U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and Goldman Sachs retail sales reports, and the NFIB small business index.
The big U.S. economic report of the week will be Wednesday’s consumer price index report. CPI for January is forecast to come in at up 0.4% from December and up 1.9% year-on-year.
In overnight news, the U.K. reported its consumer price index at up a hot 3.0% in January, year-on-year.
Technically, April gold futures bulls and bears are on a level overall near-term technical playing field. Prices are still in a fledgling downtrend. Bulls’ next upside technical objective is pushing and closing prices above chart resistance at $1,350.00. Bears' next near-term downside price breakout objective is closing prices below solid technical support at $1,300.00. First support is seen at today’s low of $1,323.70 and then at Monday’s low of $1,316.30. First resistance is seen at today’s high of $1,333.50 and then at $1,350.00. Wyckoff’s Market Rating: 5.0
March silver bears have the overall near-term technical advantage. However, good gains early this week suggest prices last week put in a near-term bottom. Prices are still in a fledgling downtrend on the daily chart. The next upside price breakout objective is closing futures 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 $16.645 and then at $16.75. Next support is seen at today’s low of $16.495 and then at Monday’s low of $16.28. Wyckoff's Market Rating: 3.5.