Gold, Silver Prices Up As Greenback Backs Off
(Kitco News) - Gold and silver prices are moderately higher in early U.S. trading Tuesday, as traders once again stepped in to “buy the dip” in prices—an underlying bullish element. The weaker U.S. dollar index and firmer crude oil prices on this day are also working in favor of the precious metals market bulls. April gold futures were last up $5.00 an ounce at $1,316.90. March Comex silver was last up $0.085 at $15.775 an ounce.
The key outside markets today see the U.S. dollar index slightly lower following recent strong gains that pushed the index to a two-month high on Monday. Nymex crude oil prices slightly are firmer and trading just above $53.00 a barrel. The oil market has been trading sideways for two weeks, as stiff chart resistance at and just above $55.00 has stalled an uptrend.
Asian and European stock markets were higher overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. Risk appetite in the marketplace this week remains keener, what with no major geopolitical events in play at present.
Traders and investors were cheered to see reports the Democrats and President Trump may be close to reaching a formal agreement on a budget that would avoid another government shutdown later this week. The reports said a tentative agreement was reached on Monday.
Focus of the marketplace this week is also 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.
U.S. economic reports due for release Tuesday include the weekly Johnson Redbook and Goldman Sachs retail sales reports, the NFIB small business index. Several Federal Reserve officials speak today, including Chairman Jerome Powell.
Technically, the April gold bulls still have the overall near-term technical advantage. Prices are still in a 2.5-month-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in April futures above solid 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 Monday’s high of $1,318.70 and then at last week’s high of $1,323.60. First support is seen at the overnight low of $1,310.00 and then at last week’s low of $1,306.40. Wyckoff's Market Rating: 6.5
March silver futures bulls have the near-term technical advantage. A 2.5-month-old uptrend is in place on the daily bar chart. Silver bulls' next upside price breakout objective is closing 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 $15.50. First resistance is seen at $15.86 and then at $16.00. Next support is seen at last week’s low of $15.635 and then at $15.50. Wyckoff's Market Rating: 6.0.