Tepid price rebound in gold after scoring 9-mo. low overnight
(Kitco News) - Gold futures prices are modestly up in early U.S. trading Tuesday, on a meek corrective bounce after hitting a nine-month low overnight. Buying interest in the safe-haven metals has been limited recently by rallying stock markets and a rebound in the U.S. dollar index. April gold futures were last up $5.10 at $1,728.00 and May Comex silver was last down $0.208 at $24.46 an ounce.
Global stock markets were mostly down overnight. U.S. stock indexes are pointed toward slightly weaker openings when the New York day session begins, after strong gains posted Monday. Government bond yields generally pulled back a bit Monday, which assuaged stock market traders for the moment. However, Asian markets were rattled overnight when a top banking official in China said the U.S. and other stock markets were in bubbles that are bound to eventually correct. The U.S. Treasury 10-year note is presently trading around 1.445% for its yield. Many veteran market watchers believe U.S. Treasury yields will continue to climb in the coming months.
In other overnight news, the Euro zone consumer price index for February came in at up 0.9% compared to a 0.9% gain in January. Once again, inflation data coming from a major global economy is nowhere near suggesting problematic price inflation down the road. However, inflation data later this year will probably be more indicative, if any major economies are indeed starting to run too hot.
The key "outside markets" today see Nymex crude oil futures prices firmer and trading around $60.85 a barrel. There is an OPEC meeting on Thursday that the marketplace will closely monitor. The U.S. dollar index is a bit higher early today.
U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and Goldman Sachs retail sales reports, the ISM New York report on business, the IDB/TIPP economic optimism index, and domestic auto industry sales.
Technically, the April gold futures bears have the solid overall near-term technical advantage amid a two-month-old price downtrend in place on the daily chart. Bulls' next upside price objective is to produce a close in April futures above solid resistance at $1,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00. First resistance is seen at $1,750.00 and then at this week's high of $1,757.40. First support is seen at $1,715.00 and then at the overnight low of $1,704.60. Wyckoff's Market Rating: 2.5
May silver futures bulls still have the slight overall near-term technical advantage but have faded recently. Silver bulls' next upside price objective is closing prices above solid technical resistance at last week's high of $28.47 an ounce. The next downside price objective for the bears is closing prices below solid support at $25.00. First resistance is seen at $27.00 and then at this week's high of $27.175. Next support is seen at $26.00 and then at today's low of $25.82. Wyckoff's Market Rating: 5.5.