Gold, Silver Slightly Lower Amid Upbeat Risk Appetite
(Kitco News) - Safe-haven gold and silver prices are slightly lower in early U.S. trading Monday. Higher world stock markets overnight are a negative for the competing asset class of precious metals. However, a slightly weaker U.S. dollar index today is working in favor of the metals bulls. June Comex gold futures were last down $0.60 an ounce at $1,335.40. May Comex silver was last down $0.007 at $16.355 an ounce.
U.S. stock indexes are also pointed toward higher openings when the New York day session begins, which suggests better investor risk appetite in the marketplace to start the trading week. Still, traders and investors are wondering if the high volatility in the stock market will continue this week. Such would favor the stock market bears and the precious metals market bulls.
The markets have not reacted significantly to reports of missile strikes on the Syrian military overnight, after weekend reports that the Syrian army has used poison gas on its civilians. Reports said the missile strikes came from Israeli jets.
The U.S.-China trade dispute simmered down a bit during the weekend. Trump administration officials said on Sunday that trade sanctions against China are not imminent and there is time to work out a solution to the matter.
The key “outside markets” on Monday morning see the U.S. dollar index slightly lower. The greenback is seeing a corrective pullback today after hitting a five-week high on Friday. Meantime, Nymex crude oil prices are higher and trading just below $63.00 a barrel.
U.S. economic data due for release Monday is light and includes the employment trends index.
Technically, June gold bulls still have the overall near-term technical advantage amid recent choppy trading. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the March high of $1,362.60. 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 $1,340.00 and then at $1,347.00. First support is seen at today’s low of $1,330.10 and then at last week’s low of $1,322.60. Wyckoff's Market Rating: 6.0
May silver futures bears have the overall near-term technical advantage amid recent choppy 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 $16.50 and then at this week’s high of $16.68. Next support is seen at last week’s low of $16.15 and then at the March low of 16.10. Wyckoff's Market Rating: 4.0.