(Kitco News) - Gold prices are lower in early U.S. trading Tuesday, on some routine profit taking from the shorter-term futures traders after recent gains that saw the market hit record highs on Monday. Silver prices are also lower as that precious metal is starting to further lag the strength in gold. April gold was down $18.50 at $2,944.70. March silver prices were last down $0.253 at $32.35.
Asian and European stock markets were mostly lower overnight. U.S. stock indexes are pointed to slightly lower openings when the New York day session begins. Risk aversion is keener today after U.S. President Trump signaled tariffs on Mexican and Canadian imports will go into effect. The Trump administration is also pressing its allies to tighten restrictions on China’s computer chip industry.
The key outside markets today see the U.S. dollar index modestly down. Nymex crude oil futures prices are slightly lower and trading around $70.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.34%.
U.S. economic data due for release Tuesday includes the weekly Johnson Redbook retail sales report, the U.S. monthly house price report, the S&P Core Logic home indexes, the Richmond Fed business survey, and the consumer confidence index.
Technically, April gold futures bulls have the strong overall near-term technical advantage. Prices are trending up on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $3,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,850.00. First resistance is seen at the contract/record high of $2,974.00 and then at $2,985.00. First support is seen at $2,925.00 and then at $2,900.00. Wyckoff's Market Rating: 9.0.
March silver futures bulls have slight the overall near-term technical advantage but a price uptrend on the daily bar chart is in jeopardy. Silver bulls' next upside price objective is closing prices above solid technical resistance at the February high of $34.24. The next downside price objective for the bears is closing prices below solid support at $31.00. First resistance is seen at the overnight high of $32.79 and then at $33.00. Next support is seen at $32.00 and then at $31.65. Wyckoff's Market Rating: 6.5.
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