Gold price modestly down as risk appetite upbeat
(Kitco News) - Gold prices are slightly lower in early U.S. trading Friday and seeing a bit of selling pressure amid generally positive trader and investor attitudes in the marketplace. A firmer U.S. dollar index is also a negative for the metals markets. April gold futures were last down $2.00 at $1,722.80 and May Comex silver was last up $0.013 at $25.06 an ounce.
Global stock markets were mostly firmer overnight. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins. World investors are in upbeat moods to end the trading week, after the U.S. weekly jobless claims report on Thursday morning suggested the world’s largest economy is rapidly breaking out of its pandemic shackles.
In overnight news, German business sentiment up-ticked in March, beating expectations. The Ifo business climate index came in at 96.6 in March from 92.7 in February and expectations for a reading of 93.0.
The world continues to watch as Egypt tries to float a massive container ship wedged between the Suez Canal, but so far with no success.
The key outside markets today see the U.S. dollar index weaker after hitting a 4.5-month high on Thursday. Nymex crude oil prices are higher and trading around $60.00 a barrel but the oil market bulls are still on the ropes after recent steep losses. The yield on the benchmark 10-year U.S. Treasury note is presently 1.636%.
U.S. economic data due for release Friday includes personal income and outlays, advance economic indicators and the University of Michigan consumer sentiment survey.
Technically, the April gold futures bears have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in April futures above solid resistance at $1,775.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the March low of $1,673.30. First resistance is seen at $1,730.00 and then at $1,740.00. First support is seen at last week’s low of $1,716.60 and then at $1,700.00. Wyckoff's Market Rating: 3.5
May silver futures bears have the overall near-term technical advantage. Prices are in a seven-week-old downtrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $26.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the January low of $24.095. First resistance is seen at $25.43 and then at $25.75. Next support is seen at $25.00 and then at $24.845. Wyckoff's Market Rating: 3.5.