Gold Prices Up On Some Safe-Haven Demand
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(Kitco News) - Gold prices are moderately higher in early U.S. trading Monday, on a bit of safe-haven demand from rising tensions between the U.S. and Iran. Some short covering in the futures market and perceived bargain hunting in the cash market are also seen after prices last week scored four-month lows. June gold futures were last up $4.20 an ounce at $1,280.10. May Comex silver was last up $0.035 at $14.99 an ounce.
There is some risk aversion in the marketplace to start the trading week, as the U.S. is ratcheting up its economic sanctions on Iran. The U.S. now intends to eliminate waivers it had granted to countries that imported Iranian crude oil. Oil prices pushed to a six-month high on the news. The U.S. and Iran have seen their already very strained relations deteriorate further under the U.S. Trump administration.
Some world stock and financial markets are closed Monday due to the Easter holiday.
Asian and European stock indexes were mixed to weaker overnight. U.S. stock indexes are pointed toward slightly lower openings when the New York day session begins.
The key outside markets today find the U.S. dollar index weaker on a corrective pullback after hitting a new high for the year last Thursday. Meantime, Nymex crude oil prices are solidly higher, hit a nearly six-month high and are trading around $65.50 a barrel.
U.S. economic reports due for release Monday are light and include the Chicago Fed business survey and existing home sales.
Technically, the gold bears have the overall near-term technical advantage. A two-month-old downtrend line is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,250.00. First resistance is seen at $1,284.90 and then at $1,291.70. First support is seen at last week’s low of $1,273.00 and then at $1,270.00. Wyckoff's Market Rating: 4.0
May silver futures bears have the overall near-term technical advantage. Prices are in a two-month-old downtrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the April high of $15.31 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.50. First resistance is seen at last week’s high of $15.055 and then at $15.215. Next support is seen at the April low of $14.795 and then at $14.70. Wyckoff's Market Rating: 4.0.