Mild price pressure on gold, silver as risk aversion recedes
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(Kitco News) - Gold and silver prices are modestly down in early U.S. trading Wednesday, as risk appetite has is slowly creeping back into the marketplace this week. That's bearish for the safe-haven metals. April gold was last down $4.80 at $1,968.60 and May silver was down $0.08 at $23.335.
Global stock markets were mixed overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. The marketplace is slowly moving beyond the U.S. and European banking troubles as risk appetite creeps back into the markets. However, veteran market watchers believe it's too soon for the "all clear" siren regarding the matter.
The U.S. data point of the week 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.
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The key outside markets today see the U.S. dollar index slightly lower. Nymex crude oil futures prices are higher and trading around $74.00 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching 3.549%.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, pending homes sales and the weekly DOE liquid energy stocks report.
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. A bullish symmetrical triangle pattern has now formed on the daily bar chart. 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 the overnight high of $1,976.00 and then at this week's high of $1,984.00. First support is seen at $1,950.00 and then at this week's low of $1,945.00. Wyckoff's Market Rating: 7.5
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 $23.515 and then at last week's high of $23.705. Next support is seen at this week's low of $22.96 and then at $22.50. Wyckoff's Market Rating: 7.0.