(Kitco News) - Gold and silver prices are down a bit in early U.S. trading Tuesday. The marketplace is subdued early this week, just ahead of the U.S. data point of the week: the Federal Open Market Committee (FOMC) monetary policy meeting that begins Tuesday morning and ends Wednesday afternoon with a statement and press conference from Fed Chairman Jerome Powell. No change in policy is expected, but as always the marketplace will parse the statement and Powell’s presser for clues on the future path and timing of monetary policy. April gold was last down $5.70 at $2,158.60. May silver was last down $0.11 at $25.155.
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.
In overnight news, the Japanese yen sunk against the U.S. dollar after the Bank of Japan ended its era of negative interest rates. The BOJ set its main interest rate range at zero to 0.1%.
The key outside markets today see the U.S. dollar index higher. Nymex crude oil prices are slightly down and trading around $82.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching 4.31%.
U.S. economic reports due out Tuesday include the weekly Johnson Redbook retail sales report and new residential construction.
Technically, the gold futures bulls have the solid overall near-term technical advantage. A steep four-week-old uptrend is in place on the daily bar chart. A bullish pennant pattern has also formed on the daily bar chart. Bulls’ next upside price objective is to produce a close in April futures above solid resistance at $2,250.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,100.00. First resistance is seen at this week’s high of $2,167.20 and then at $2,180.00. First support is seen at this week’s low of $2,149.20 and then at $2,140.00. Wyckoff's Market Rating: 8.0.
The silver bulls have the firm overall near-term technical advantage. Prices hit a three-month high Friday. Silver bulls' next upside price objective is closing May futures prices above solid technical resistance at the December high of $26.575. The next downside price objective for the bears is closing prices below solid support at $24.00. First resistance is seen at the overnight high of $25.36 and then at last week’s high of $25.66. Next support is seen at $25.00 and then at $24.50. Wyckoff's Market Rating: 7.0.
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