Price pressure on gold, silver amid bearish charts
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(Kitco News) - Gold and silver prices are lower in early U.S. trading Tuesday, with gold hitting a nine-week low and silver a nearly four-month low overnight. Deteriorating technical postures for both precious metals continue to invite the chart-based speculators to the sell sides of the markets. A lack of big news developments and no major economic reports so far this week are allowing the technical traders to dominate trading. April gold was last down $9.40 at $1,815.60 and March silver was down $0.125 at $20.545.
Global stock markets were mixed overnight. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins. The marketplace has been quieter so far this week.
The key outside markets this morning see the U.S. dollar index slightly up. Nymex crude oil futures prices are higher and trading around $77.00 a barrel. The yield on the benchmark U.S. 10-year Treasury note is presently fetching 3.943%.
U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and chain store retail indexes, the advance economic indicators report, the monthly house price index, the S&P Core-Logic Case-Shiller home indexes, the Chicago ISM business survey, the Richmond Fed business activity survey, and the consumer confidence index.
Technically, the gold futures bears have the overall near-term technical advantage. Prices are in a downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in April futures above solid resistance at last week’s high of $1,856.40. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at this week’s high of $1.827.30 and then at $1,841.20. First support is seen at the overnight low of $1,810.80 and then at $1,800.00. Wyckoff's Market Rating: 4.0.
The silver bears have the overall near-term technical advantage. Prices are in a steep downtrend on the daily bar chart. Silver bulls' next upside price objective is closing March futures prices above solid technical resistance at $22.00. The next downside price objective for the bears is closing prices below solid support at $19.00. First resistance is seen at this week’s high of $20.82 and then at $21.00. Next support is seen at $20.25 and then at $20.00. Wyckoff's Market Rating: 3.5.
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