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(Kitco News) - Gold and silver prices are firmer in early U.S. trading Tuesday, on a corrective bounce and some perceived value buying following recent selling pressure. A lower U.S. dollar index and stable U.S. Treasury yields on this day also favor the metals market bulls. June gold was last up $9.10 at $2,016.20 and May silver is up $0.107 at $25.195.
It's not unusual for market bulls to get anxious as their market pauses, corrects, and does some backing and filling on the charts—amid an existing price uptrend. It's important to remember that healthy bull markets and price uptrends need to see downside corrections and pauses in order for the uptrend to be extended. Keep in mind that June gold futures prices are still around $156.00 above the close of $1,859.90 an ounce on the last trading day of 2022, on December 30.
Global stock markets were mixed to higher overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. The U.S. stock indexes are still in price uptrends on the daily bar charts and not far below their highs for this year.
In overnight news, China's economic growth in the first quarter came in better than expected at up 4.5%, year-on-year. That was above expectations for a gain of 4.0%. In the fourth quarter of 2022, China's GDP expanded by only 2.2%, as the world's second-largest economy was still hamstrung by Covid restrictions. In a reflection of current sentiment toward China by many Western nations, a Wall Street Journal headline today reads: “G-7 seeks to lessen economic reliance on Beijing."
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| Gold and silver hit a brick wall as hedge fund buying cools down |
The key outside markets today see the U.S. dollar index lower. Nymex crude oil prices are a bit weaker and trading around $80.50 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching 3.585%.
U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and chain store retail indexes, and new residential construction.
![Live 24 hours gold chart [Kitco Inc.]](/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, the gold futures bulls still have the solid overall near-term technical advantage. Prices are in a five-week-old uptrend on the daily bar chart. Bulls' next upside price objective is to produce a close in June futures above solid resistance at the April high of $2,063.40. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the April low of $1,965.90. First resistance is seen at this week's high of $2,028.00 and then at $2,050.00. First support is seen at $2,000.00 and then this week's low of at $1,993.40. Wyckoff's Market Rating: 7.5
![Live 24 hours silver chart [ Kitco Inc. ]](/images/live/silver.gif)
The silver bulls have the solid overall near-term technical advantage. Prices are in a steep uptrend on the daily bar chart. Silver bulls' next upside price objective is closing May futures prices above solid technical resistance at $27.50. The next downside price objective for the bears is closing prices below solid support at $23.50. First resistance is seen at this week's high of $25.71 and then at $26.00. Next support is seen at this week's low of $24.92 and then at $24.695. Wyckoff's Market Rating: 7.5.
