(Kitco News) - Gold and prices are slightly lower in midday U.S. trading Monday. However, a very wobbly U.S. stock market that is under strong selling pressure again today is keeping a price floor under the safe-haven metals. April gold was last down $2.20 at $2,911.90. May silver prices were last down $0.179 at $32.63.
Some mild profit-taking pressure from the shorter-term futures traders is also seen in both precious metals markets today.
U.S. stock indexes are solidly lower. U.S. traders and investors are becoming more worried about trade tariffs causing a U.S. recession. Commenting in a television interview on the U.S. economic outlook, President Trump declined to rule out a recession. He said “there is a period of transition, because what we’re doing is very big. …We’re bringing wealth back to America. …That’s a big thing, and there are always periods, it takes a little time.”
The U.S. data points of the week are the consumer price index report for February on Wednesday and the producer price index for February on Thursday.
The key outside markets today see the U.S. dollar index near steady. Nymex crude oil futures prices are weaker and trading around $66.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.22%.
Technically, April gold futures bulls have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the contract high of $2,974.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at last week’s low of $2,844.10. First resistance is seen at the overnight high of $2,926.40 and then at this week’s high of $2,941.30. First support is seen at $2,900.00 and then at $2,892.50. Wyckoff's Market Rating: 7.5.
May silver futures bulls have the slight overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at the February high of $34.56. The next downside price objective for the bears is closing prices below solid support at $31.00. First resistance is seen at last week’s high of $33.38 and then at $34.00. Next support is seen at $32.50 and then at $32.00. Wyckoff's Market Rating: 5.5.
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