(Kitco News) - Gold and silver prices are a bit weaker in early U.S. trading Monday, on routine corrective pullbacks after recent gains that saw gold hit a two-month high Friday. A slight up-tick in U.S. Treasury yields and weaker crude oil prices are negative outside-market influences to start the trading week. April gold was last down $4.40 at $2,091.30. May silver was last down $0.024 at $23.34.
Asian and European stock markets were mixed in overnight trading. U.S. stock index futures are set to open mixed when the New York day session begins.
This week sees China’s National People’s Congress, including the Chinese People’s Political Consultative Conference. Broker SP Angel said in an email dispatch today: “We expect more rhetoric on transitioning the economy towards high-tech industries and pulling of economic levers. We do not expect to see any particular form of quantitative easing but we do see policies to acquire and finish the construction of many property developments.” China’s economic growth target may be revised to a range of 4.5-5.0%, according to Oxford Economics.
The key outside markets today see the U.S. dollar index a bit weaker. Nymex crude oil prices are slightly down and trading around $79.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching 4.209%.
There is no major U.S. economic data due for release Monday. However, the data pace picks up the rest of the week, including Fed Chairman Powell addressing Congress on Wednesday and Thursday, and the monthly U.S. employment report on Friday.
Technically, the gold futures bulls have the overall near-term technical advantage and have momentum. A three-week-old downtrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in April futures above solid resistance at the December high of $2,171.50. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,000.00. First resistance is seen at last week’s high of $2,097.10 and then at $2,100.00. First support is seen at $2,083.20 and then at $2,075.00. Wyckoff's Market Rating: 6.5.
The silver bulls and bears are back on a level overall near-term technical playing field. Silver bulls' next upside price objective is closing May futures prices above solid technical resistance at $24.50. The next downside price objective for the bears is closing prices below solid support at the February low of $22.19. First resistance is seen at last week’s high of $23.485 and then at the February high of $23.765. Next
support is seen at $23.00 and then at Friday’s low of $22.71. Wyckoff's Market Rating: 5.0.
(Hey! My “Markets Front Burner” weekly email report is my best writing and analysis, I think, because I get to look ahead at the marketplace and do some market price forecasting. Plus, I’ll throw in an educational feature to move you up the ladder of trading/investing success. And it’s free! Email me at jim@jimwyckoff.com and I’ll add your email address to my Front Burner list.)