(Kitco News) - Gold prices are down a bit in midday U.S. trading Monday, on some light profit-taking from the shorter-term futures traders and as the U.S. stock indexes are posting strong gains to start the trading week. A firmer U.S. dollar index is also a mildly negative daily outside-market element for gold and silver. April gold was last down $6.00 at $3,015.60. May silver prices were last up $0.044 at $33.53.
U.S. stock indexes are sharply higher and hit three-week highs at midday on corrective rebounds from recent selling pressure. Today’s price action in the stock indexes begins to suggest they have put in near-term market bottoms. If market bottoms are in place in the indexes, such would be a bearish element for the competing asset class of precious/safe haven metals.
The key outside markets today see the U.S. dollar index firmer and hitting a three-week high. Nymex crude oil futures prices are higher and trading around $69.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.315%. The recent rise in bond yields is a negative for gold and silver prices.
Technically, April gold futures bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $3,100.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,900.00. First resistance is seen at $3,050.00 and then at the contract high of $3,065.20. First support is seen at the overnight low of $3,009.80 and then at $3,000.00. Wyckoff's Market Rating: 8.5.
May silver futures bulls have the overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at the March high of $35.00. The next downside price objective for the bears is closing prices below solid support at $32.215. First resistance is seen at $34.00 and then at $34.50. Next support is seen at last week’s low of $33.165 and then at $33.00. Wyckoff's Market Rating: 6.0.
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