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Modest price pressure on gold as crude oil sharply down

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(Kitco News) - Gold and silver prices are weaker in early U.S. trading Thursday. Sharply lower crude oil prices and a higher U.S. dollar index are bearish outside market forces working against the metals markets on this last trading day of the month and of the quarter. April gold futures were last down $2.40 at $1,931.20 and May Comex silver was last down $0.038 at $25.065 an ounce.

Nymex crude oil prices are sharply lower and trading around $101.00 a barrel. Reports said the Biden administration is mulling releasing up to 1 million barrels a day in the coming months from its strategic petroleum reserve, for a total of 180 million barrels. An OPEC meeting Thursday will see the cartel discuss its collective production level from May forward.

Meantime, the U.S. dollar index is higher early today. The benchmark U.S. 10-year Treasury note is presently yielding 2.322%. For perspective, the German 10-year bund is yielding 0.597% and the 10-year U.K. gilt is fetching 1.616%.

Global stocks markets were mixed overnight. The U.S. stock indexes are pointed toward weaker openings when the New York day session begins. The U.S. stock indexes are in near-term price uptrends. Today is the last trading day of the month and of the quarter, which makes it an extra important day from a technical charts perspective.

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In overnight news, China’s manufacturing and services purchasing managers indexes (PMI) fell in March for the first time in nearly two years. The official manufacturing PMI fell to 49.5, a five-month low. The non-manufacturing PMI fell to 48.4, a seven-month low. A reading under 50.0 suggests contraction in the sector. China’s economy has been hit recently by strict lockdowns in major cities.

Traders are awaiting Friday’s monthly U.S. employment situation report for March, which is expected to see the key non-farm payrolls number come in at up 490,000, compared to a rise of 678,000 seen in the February report.

U.S. economic data due for release Thursday includes the weekly jobless claims report, the Challenger job-cuts report, personal income and outlays, the Chicago ISM business survey,

Live 24 hours gold chart [Kitco Inc.]

Technically, the April gold futures bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in April futures above major resistance at last week’s high of $1,967.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,850.00. First resistance is seen at Wednesday’s high of $1,937.00 and then at $1,950.00. First support is seen at Wednesday’s low of $1,914.50 and then at $1,900.00. Wyckoff's Market Rating: 6.0

Live 24 hours silver chart [ Kitco Inc. ]

May silver futures bulls have the slight overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at last week’s high of $26.16 an ounce. The next downside price objective for the bears is closing prices below solid support at this week’s low of $24.045. First resistance is seen at Wednesday’s high of $25.265 and then at $25.50. Next support is seen at the overnight low of $24.67 and then at $24.55. Wyckoff's Market Rating: 5.5.

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.