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Gold, silver in price pauses on busy U.S. data Thursday

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(Kitco News) - Gold and silver prices are modestly down in early U.S. trading Thursday, on mild downside corrections and pauses following recent good gains. It's busy day for U.S. economic reports, highlighted by retail sales. June gold futures were last down $1.60 at $1,982.90 and May Comex silver was last down $0.19 at $25.845 an ounce.

Global stocks markets were to firmer mixed overnight. The U.S. stock indexes are pointed toward mixed openings when the New York day session begins. Risk aversion is a bit keener heading into a long three-day holiday weekend for many countries. Russian President Putin has again threatened NATO with his nuclear arsenal, saying he will deploy those weapons in and around the Baltic Sea if Sweden and Switzerland join the NATO alliance. Corporate earnings reports will be closely scrutinized by stock traders. The big news in the equities world Tuesday is Elon Musk's unsolicited offer to buy Twitter, which has stock market watchers buzzing.

Surging Covid cases in China remain a serious concern for the overall global economy. Bloomberg today reports Chinese President Xi Jinping "sees no alternative to a zero-tolerance approach to Covid-19 despite simmering anger in the locked-down financial hub of Shanghai and mounting costs, telling officials yesterday they must adhere to the principle of people first and life first. The outbreak has Xi, who's likely to seek a third five-year term during a Communist Party congress later this year, facing one of the biggest tests of his tenure. For many of Shanghai's 25 million residents, the restrictions have meant resorting to bartering with neighbors for basic necessities like ice cream for vegetables or wine for cake."

Meantime, China's central bank appears set to lower interest rates and reduce the reserve requirement ratio for its banks. The moves would be intended to free up more liquidity in the banking sector to help bolster the economy which has been hit by the particularly bad wave of covid.

The European Central Bank is meeting as of this writing and its conclusion will occur shortly. No changes in ECB monetary policy are expected but the ECB commentary coming out of the meeting will be important.

Russia cut its USD holdings prior to invading Ukraine, has enough gold and yuan despite sanctions, says country's central bank

Nymex crude oil futures prices are lower today and trading around $103.00 a barrel. The U.S. dollar index is weaker early today after hitting a two-year high earlier this week. The yield on the 10-year U.S. Treasury note is presently fetching 2.675%.

It's a busy day for U.S. economic data released Thursday, including the weekly jobless claims report, retail sales, import and export prices, manufacturing and trade inventories, and the University of Michigan consumer sentiment survey.

Live 24 hours gold chart [Kitco Inc.]

Technically, the June gold futures bulls have the firm overall near-term technical advantage. Bulls' next upside price objective is to produce a close in April futures above major resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,915.00. First resistance is seen at this week's high of $1,985.80 and then at $2,000.00. First support is seen at Wednesday's low of $1,966.30 and then at $1,950.00. Wyckoff's Market Rating: 7.0

Live 24 hours silver chart [ Kitco Inc. ]

May silver futures bulls have the firm overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at the March high of $27.495 an ounce. The next downside price objective for the bears is closing prices below solid support at the March low of $24.045. First resistance is seen at $26.00 and then at $26.16. Next support is seen at Wednesday's low of $25.53 and then at $25.25. Wyckoff's Market Rating: 7.0.

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.