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(Kitco News) - Gold prices are moderately down and fell to a four-month low in early U.S. trading Tuesday. The safe-haven metals continue to be hamstrung by not much risk aversion in the world marketplace and by a strong U.S. dollar on the foreign exchange market. June gold futures were last down $3.20 an ounce at $1,274.40. May Comex silver was last down $0.09 at $14.885 an ounce.

Asian and European stock indexes were mixed to mostly weaker overnight. U.S. stock indexes are pointed toward slightly lower openings when the New York day session begins. With no major geopolitical hotspots in play at present, focus of traders and investors is on corporate earnings reports.

Rising oil prices that saw Nymex crude push above $66.00 a barrel and to a six-month high overnight, with Brent crude above $70.00, are getting more attention in the marketplace. More gains in crude oil would likely prompt some keener concerns about problematic inflation, as well as economic growth concerns. Oil’s surge this week is mainly due to the U.S. not renewing waivers it had given to some countries on sanctioned Iranian crude oil imports. And with oil being arguably the leader of the raw commodity sector, crude’s rally should at least be limiting selling interest in the metals.

The other key outside markets today find the U.S. dollar index slightly up and not far below the high for the year set last Thursday. The strong greenback makes metals that are priced in U.S. dollars on the world market more expensive to purchase in non-U.S. currency.

U.S. economic reports due for release Tuesday include the weekly Johnson Redbook and Goldman Sachs retail sales reports, the monthly house price index, new residential sales, and the Richmond Fed business survey.

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 Monday’s high of $1,281.90 and then at $1,285.00. First support is seen at $1,270.00 and then at $1,260.00. 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 Monday’s high of $15.04 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.

By Jim Wyckoff

For Kitco News

Follow @jimwyckoff

jwyckoff@kitco.com

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