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Gold, Silver Prices Pressured By Strong USDX, Lower Oil

Kitco News

(Kitco News) - Gold and silver prices are moderately lower in early-afternoon U.S. trading Monday. A higher U.S. dollar index early this week that hit a seven-week high today is a bearish “outside market” force working against the precious metals markets. April gold futures were last down $7.60 an ounce at $1,310.90. March Comex silver was last down $0.129 at $15.68 an ounce.

The other key outside market today was also in a bearish posture for the metals, as Nymex crude oil prices are weaker and trading just above $52.00 a barrel.

The world marketplace continues in a generally upbeat mood, with no serious geopolitical events at present that would create anxiety. Remember, however, that history shows geopolitical calm can be quickly and unexpectedly interrupted.

Focus of the marketplace early this week is on U.S.-China high-level trade talks taking place in Beijing. U.S. Treasury Secretary Mnuchin and U.S. Trade Representative Lighthizer will attend the talks, likely to take place with them present later this week. Many traders and investors are upbeat that a deal can be reached by the March 1 deadline.

The continuing resolution passed by Congress a couple weeks ago expires on Friday, with the U.S. government set for another partial shutdown in the Democrats and President Trump cannot come to agreement on a budget plan. Another shutdown would be bearish for the U.S. stock market and probably mildly bullish for the safe-haven metals.

There were no major U.S. economic reports released Monday.

Live 24 hours gold chart [Kitco Inc.]

Technically, April gold futures prices closed nearer the session high low today. The bulls still have the overall near-term technical advantage. A 2.5-month-old price uptrend is still in place on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the January high of $1,331.10. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,300.00. First resistance is seen at today’s high of $1,318.70 and then at last week’s high of $1,323.60. First support is seen at last week’s low of $1,306.40 and then at $1,300.00. Wyckoff's Market Rating: 6.5

Live 24 hours silver chart [ Kitco Inc. ]

March silver futures prices closed nearer the session low today. The silver bulls have the overall near-term technical advantage amid a two-month-old price uptrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $16.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the January low of $15.195. First resistance is seen at today’s high of $15.83 and then at last week’s high of $15.935. Next support is seen at last week’s low of $15.635 and then at $15.50. Wyckoff's Market Rating: 6.5.

March N.Y. copper closed down 220 points at 278.85 cents today. Prices closed near mid-range. The copper bulls have the overall near-term technical advantage. Prices have been trending higher for six weeks. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 290.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 265.00 cents. First resistance is seen at today’s high of 281.30 cents and then at the February high of 285.05 cents. First support is seen at today’s low of 2.7740 cents and then at 275.00 cents. Wyckoff's Market Rating: 5.5.

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.