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Gold, Silver Prices Pull Back On Normal Profit Taking

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(Kitco News) - Gold and silver prices are lower in early U.S. trading Tuesday, on normal downside corrections following recent gains that pushed prices to multi-week highs recently. Some profit-taking from the shorter-term futures traders is also featured today. April gold futures were last down $9.60 an ounce at $1,313.00. May Comex silver was last down $0.132 at $15.44 an ounce.

Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. Trader and investor risk appetite has up-ticked a bit today, which is also a negative for the safe-haven metals. Trading is more subdued early this week, amid a lack of major news to move markets and ahead of key events later this week that include high-level trade talks between the U.S. and China, and gross domestic product data coming from several countries.

A feature in the marketplace recently has been falling government bond yields in the major industrialized countries. U.S. Treasury yields briefly inverted late last week when the short-term 3-month note yield moved above the 10-year note yield. In Germany, government bond yields are now just into negative territory. Worries about economic growth in the major countries, combined with very low inflation, are prompting the falling bond yields (rising prices).

The key outside markets today see the U.S. dollar index slightly weaker on a corrective pullback from solid gains late last week. Meantime, Nymex crude oil prices are higher and trading around $59.50 a barrel.

U.S. economic reports due for release Tuesday include the weekly Goldman Sachs and Johnson Redbook retail sales reports, new residential construction, the S&P/Case-Shiller home price indexes, the consumer confidence index, the monthly house price index, and the Richmond Fed business survey.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bulls have the firm overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in April futures above solid resistance at the January high of $1,331.30. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the March low of $1,280.80. First resistance is seen at $1,320.00 and then at Monday’s high of $1,324.50. First support is seen at $1,306.50 and then at $1,300.00. Wyckoff's Market Rating: 7.0.

Live 24 hours silver chart [ Kitco Inc. ]

May silver futures bulls have the overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $16.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the March low of $14.985. First resistance is seen at the overnight high of $15.56 and then at last week’s high of $15.65. Next support is seen at last Friday’s low of $15.365 and then at last week’s low of $15.22. Wyckoff's Market Rating: 6.5.

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.