(Kitco News) - Gold and silver prices are lower in early U.S. trading Monday, as the key “outside markets” are in bearish daily postures for the precious metals: the U.S. dollar index is higher, U.S. Treasury yields are up and crude oil prices are weaker. There is also the bearish hangover from last Friday’s strong U.S. jobs report that fell squarely into the camp of the U.S. monetary policy hawks. April gold was last down $13.90 at $2,039.80. March silver was last down $0.266 at $22.53.
Asian and European stock markets were mixed in overnight trading. U.S. stock index futures are set to open slightly lower when the New York day session begins.
Risk aversion is elevated to start the trading week, following weekend U.S. and U.K. air strikes on Houthi rebel bases in Syria and Iraq, which were followed by at least six Kurdish fighters being killed in a drone attack on a Syrian base housing U.S. troops.
In overnight news, the Eurozone December producer price index was reported down 0.8% from November and down 10.6%, year-on-year.
The key outside markets today see the U.S. dollar index higher and hitting a nearly three-month high. Nymex crude oil prices weaker and trading around $71.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching 4.079%--up significantly from what was seen just before last Friday’s U.S. jobs report.
U.S. economic data due for release Monday includes the U.S. services purchasing managers’ index (PMI), the ISM report on business services, the global services PMI and the employment trends index.
Technically, the gold futures bulls have the slight overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in April futures above solid resistance at $2,100.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,000.00. First resistance is seen at $2,050.00 and then at the overnight high of $2,059.10. First support is seen at the overnight low of $2,036.80 and then at the January low of $2,023.30. Wyckoff's Market Rating: 5.5.
The silver bears have the overall near-term technical advantage. Prices are in a two-month-old downtrend on the daily bar chart. Silver bulls' next upside price objective is closing March futures prices above solid technical resistance at $23.72. The next downside price objective for the bears is closing prices below solid support at the October low of $21.17. First resistance is seen at the overnight high of $22.84 and then at $23.00. Next support is seen at today’s low of $22.45 and then at $22.00. Wyckoff's Market Rating: 3.0.
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