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Gold, Silver Prices Pull Back From Friday's Gains

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(Kitco News) - Gold and silver prices are modestly down in early U.S. trading Monday, on downside corrections following good gains posted last Friday that produced technically bullish weekly high closes. April gold futures were last down $4.30 an ounce at $1,295.10. May Comex silver was last down $0.044 at $15.305 an ounce.

Asian and European stock markets were mixed overnight. U.S. stock indexes are pointed toward mixed openings when the New York day session begins. The Dow Jones Industrial average is pointed lower mainly due to a big drop in Boeing shares after another one of its airliners crashed in Africa over the weekend.

Traders and investors are mostly upbeat to start the trading week, following dour economic data out of the U.S. and China late last week. The U.S jobs report last Friday showed a sharp drop in the growth of non-farm payrolls, while China’s latest import and export numbers were down.

The U.S.-China trade talks appear to be moving closer to a formal agreement following a report over the weekend that the head of China’s central bank said his country will not devalue the yuan to boost China’s exports.

U.S. Federal Reserve Chairman Jerome Powell, in a rare TV interview on Sunday, reiterated the U.S. economic outlook is favorable and said there is no need to raise or lower interest rates at present.

The key outside markets today see the U.S. dollar index near steady and not far below last week’s new high for the year. Nymex crude oil prices are firmer and trading around below $56.50 a barrel. Crude has been trading sideways for the past two weeks. The International Energy Agency today reported the U.S. will become the world’s largest oil exporter by 2021—surpassing both Saudi Arabia and Russia. The U.S. is already the world’s largest oil producer, due to the boom in shale-oil production.

U.S. economic reports due for release Monday include retail sales, manufacturing and trade inventories, and the employment trends index. President Trump also releases his fiscal year 2020 budget.

Live 24 hours gold chart [Kitco Inc.]

Technically, the April gold bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in April futures above solid resistance at $1,320.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,275.00. First resistance is seen at $1,300.00 and then at last week’s high of $1,301.30. First support is seen at $1,290 and then at Friday’s low of $1,285.60. Wyckoff's Market Rating: 6.0

Live 24 hours silver chart [ Kitco Inc. ]

May silver futures bulls and bears are back on a level overall near-term technical playing field after Friday’s good gains. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $15.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at last week’s low of $14.985. First resistance is seen at last week’s high of $15.385 and then at $15.50. Next support is seen at $15.20 and then at $15.00. Wyckoff's Market Rating: 5.0.

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