(Kitco News) - Gold prices are posting good gains in early U.S. trading Tuesday, supported by a weaker U.S. dollar index, slightly firmer crude oil prices and a downtick in U.S. Treasury yields. Silver prices are slightly up. Bullish technical postures for both metals continue to invite the chart-based speculators to the long sides of these markets. April gold was last up $20.00 at $2,196.60. May silver was last up $0.059 at $24.95.
The marketplace is watching the developments surrounding a large container ship striking a major bridge in Baltimore, collapsing the bridge and stranding the ship. There are likely at least several casualties, but also the disaster will impact shipping at the third-largest port on the eastern seaboard.
Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed toward firmer openings when the New York day session begins.
In other news, the London Metals Exchange has increased margins on copper and aluminum alloy trading in an effort to try to curb speculation in the copper market. “The LME is almost certainly dissuading speculation in copper with long positions now at a two-year high and volumes last week at three-year highs. With many of the world’s traders lining up to propel copper higher the LME is acting early to dampen excessive speculation,” said broker SP Angel.
The key outside markets today see the U.S. dollar index lower. Nymex crude oil prices are a bit weaker and trading around $81.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching around 4.23%.
U.S. economic reports due for release Tuesday includes the weekly Johnson Redbook retail sales report, durable goods orders, the monthly house price index, the S&P Case-Shiller home price index, the Richmond Fed business survey, and the consumer confidence index.
Technically, the gold futures bulls have the solid overall near-term technical advantage. A five-week-old uptrend 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 record high of $2,225.30. Bears' next near-term downside price objective is pushing futures prices below solid technical support at last week’s low of $2,149.20. First resistance is seen at $2,203.00 and then at the contract high of $2,225.30. First support is seen at $2,180.00 and then at the overnight low of $2,168.30. Wyckoff's Market Rating: 8.0.
The silver bulls have the overall near-term technical advantage. Silver bulls' next upside price objective is closing May futures prices above solid technical resistance at last week’s high of $25.975. 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 $25.05 and then at $25.50. Next support is seen at the overnight low of $24.655 and then at last week’s low of $24.58. Wyckoff's Market Rating: 6.5.
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