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Gold price sharply down on heavy profit taking

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(Kitco News) - Gold prices are sharply lower and silver mildly down in early U.S. trading Monday. Strong profit-taking pressure and weak long liquidation from the futures traders are featured in both metals to start the trading week. April gold was last down $27.60 at $1,956.00 and May silver was down $0.164 at $23.19.

Global stock markets were mostly higher overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. Risk appetite is a bit keener to start the trading week, and that’s a negative for the safe-haven metals. The U.S. and European banking systems appear to have stabilized, at least for the moment. First Citizens Bancshares has agreed to buy pieces of Silicon Valley Bank. Meantime, Deutsche Bank shares are firmer today amid easing fears for that bank’s health.

Geopolitics is moving closer to the front burner of the marketplace as Russia over the weekend threatened to station tactical nuclear weapons in Belarus. North Korea has test-fired more ballistic missiles and the U.S. has retaliated with air strikes in Syria after an Iranian-backed drone attack killed a U.S. citizen and injured U.S. military personnel.

It’s a busy week for U.S. economic data, including Friday’s much-anticipated personal consumption and expenditures data that will provide fresh clues on whether the U.S. economy is headed toward recession.

Gold bulls are in the driver's seat; market sentiment looking for prices to hold around $2,000

The key outside markets today see the U.S. dollar index near steady. Nymex crude oil futures prices are modestly up and trading around $69.75 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching 3.458%.

U.S. economic data due for release Monday includes the Texas manufacturing survey.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold futures bulls still have the firm overall near-term technical advantage. Prices are still in an uptrend on the daily bar chart, but now just barely. Bulls’ next upside price objective is to produce a close in April futures above solid resistance at the March high of $2,014.90. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at $1,975.00 and then at the overnight high of $1,984.00. First support is seen at the overnight low of $1,949.30 and then at last week’s low of $1,936.50. Wyckoff's Market Rating: 7.5

Live 24 hours silver chart [ Kitco Inc. ]

The silver bulls have the firm overall near-term technical advantage. Silver bulls' next upside price objective is closing May futures prices above solid technical resistance at $24.00. The next downside price objective for the bears is closing prices below solid support at $21.50. First resistance is seen at the overnight high of $23.485 and then at last week’s high of $23.705. Next support is seen at $23.00 and then at $22.50. Wyckoff's Market Rating: 6.5.

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.