Gold Gains Amid Wobbly World Stock Markets, Recession Fears

(Kitco News) – Gold and silver prices are firmer in early U.S. trading Monday, on some more mild safe-haven buying amid weaker world stock markets to start the trading week. April gold futures were last up $5.20 an ounce at $1,317.60. May Comex silver was last up $0.123 at $15.53 an ounce.

Asian and European shares were mostly weaker overnight on heightened concerns regarding slowing global economic growth. U.S. stock indexes are pointed toward weaker openings when the New York day session begins. Following recent major central bank meetings that warned of slowing economic growth prospects, traders and investors have lost some risk appetite, to the benefit of safe-haven gold and silver markets.

In overnight news, the closely watched German Ifo business sentiment index improved in March, with a reading of 99.6 versus 98.7 in February. However, the manufacturing component of the report was weaker in March than in February.

The marketplace is not paying much attention to the weekend news that U.S. special prosecutor Robert Mueller’s investigation of President Trump apparently did not turn up anything criminal.

The key outside markets today see the U.S. dollar index weaker on a corrective pullback from solid gains late last week. Meantime, Nymex crude oil prices are near steady and trading around $59.00 a barrel.

U.S. economic reports due for release Monday includes the Chicago Fed national activity index and the Texas manufacturing outlook survey.

Technically, the gold bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in April futures above solid resistance at the January high of $1,331.30. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at the March low of $1,280.80. First resistance is seen at the March high of $1,320.20 and then at $1,325.00. First support is seen at the overnight low of $1,310.60 and then at $1,305.00. Wyckoff’s Market Rating: 7.0.

May silver futures bulls have the overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $16.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the March low of $14.985. First resistance is seen at last week’s high of $15.65 and then at $15.75. Next support is seen at Friday’s low of $15.365 and then at last week’s low of $15.22. Wyckoff’s Market Rating: 6.5.

By Jim Wyckoff
For Kitco News


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