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Gold price firmer on bargain buying, weaker USDX

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(Kitco News) - Gold prices are modestly up in early U.S. trading Tuesday, on some perceived bargain hunting and amid a lower U.S. dollar index on this day. Gold and silver bulls are still enjoying the firm near-term technical advantage. April gold was last up $4.90 at $1,958.70 and May silver was up $0.055 at $23.19.

Global stock markets were mixed overnight. U.S. stock indexes are pointed toward slightly lower openings when the New York day session begins. The U.S. and European banking crisis appears to have stabilized, at least for now. That’s allowing risk appetite to creep back into the marketplace.

It’s a busy week for U.S. economic data, but the highlight is Friday’s personal consumption and expenditures (PCE) data that will provide fresh clues on inflation and whether the U.S. economy is headed toward recession. It’s been said the PCE data is a favorite gauge of inflation for the Federal Reserve.

The key outside markets today see the U.S. dollar index lower. Nymex crude oil futures prices are modestly up and trading around $73.00 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching 3.558%.

Is the gold price sustainable at $2,000 as the short-squeeze runs its course?

U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and chain store retail indexes, advance economic indicators, the monthly house price index, the S&P Core-Logic home price index, the Richmond Fed business survey, the consumer confidence index and industrial production and capacity utilization.

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 Monday’s high of $1,984.00. First support is seen at Monday’s low of $1,945.00 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 Monday’s high of $23.485 and then at last week’s high of $23.705. Next support is seen at the overnight low of $22.96 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.