Gold, Silver Prices Pull Back From Monday's Advances
(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.
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.
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
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.