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Gold, Silver Prices Pull Back From Monday's Advances

Kitco News

(Kitco News) - Gold and silver prices are slightly lower in early U.S. trading Tuesday, on a corrective pullback after good gains scored on Monday. June Comex gold futures were last down $3.30 an ounce at $1,343.60. May Comex silver was last down $0.092 at $16.585 an ounce.

World stock markets were lower overnight, following the sharp losses seen in the U.S. stock market on Monday that saw the indexes hit seven-week lows. Most European markets were closed for a holiday on Monday. U.S. stock indexes are pointed toward higher openings, on corrective bounces, when the New York day session begins.

Fears of a global trade war have been stoked further by China’s retaliatory actions after the U.S. recently slapped the world’s second-largest economy with trade sanctions. While the U.S. and China have begun negotiations to resolve their trade dispute, the world marketplace is nonetheless rattled by the matter. A deterioration in U.S.-China trade relations would likely be a significantly bullish development for safe-haven gold and silver markets.

The key “outside markets” on Tuesday morning see the U.S. dollar index slightly lower. Meantime, Nymex crude oil prices are firmer and trading just above $63.00 a barrel.

U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and Goldman Sachs retail sales reports, the ISM New York report on business, the IBD/TIPP economic optimism index, the global manufacturing PMI and domestic auto industry sales.

Live 24 hours gold chart [Kitco Inc.]

Technically, June gold bulls 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 $1,300.00. First resistance is seen at Monday’s high of $1,349.20 and then at last week’s high of $1,362.60. First support is seen at the overnight low of $1,340.20 and then at $1,330.00. Wyckoff's Market Rating: 6.0

Live 24 hours silver chart [ Kitco Inc. ]

May silver futures bulls and bears are on a level overall near-term technical playing field amid recent choppy and sideways trading. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the March high of $16.895 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 Monday’s high of $16.68 and then at last week’s high of $16.81. Next support is seen at the overnight low of $16.50 and then at last week’s low of $16.195. Wyckoff's Market Rating: 5.0.

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.