(Kitco News) – Gold and silver prices are posting moderate losses in early-morning U.S. trading Monday. The metals are seeing a corrective pullback after posting decent gains Friday that did produce technically bullish weekly high closes. June gold futures were last down $5.20 an ounce at $1,283.50. May Comex silver was last down $0.095 at $14.91 an ounce.
Asian and European stock indexes were narrowly mixed in more subdued trading overnight. U.S. stock indexes are pointed toward mixed openings when the New York day session begins. There continues to be little activity on the geopolitical front to influence world markets, making for a generally calmer and quieter trading environment, which is negative for safe-haven gold and silver prices. The U.S. stock indexes last week hit record or multi-month highs amid upbeat corporate earnings reports being released.
It will likely be a busier trading week this week, as the U.S. economic data pace picks up, including the Federal Open Market Committee (FOMC) meeting that begins Tuesday morning and ends Wednesday afternoon with a statement and a press conference from Fed Chairman Jerome Powell. No change in U.S. monetary policy is expected at this meeting.
U.S. corporate earnings reports will also continue to be released this week.
U.S.-China trade talks also resume this week, with U.S. officials traveling to Beijing. Most of the marketplace is optimistic the U.S. and China will reach a plausible trade deal in the coming weeks.
The key “outside markets” today see the U.S. dollar index trading slightly up after hitting a two-year high Friday. Meantime, Nymex crude oil prices are slightly lower on more profit taking after hitting a six-month high last week, and are now trading around $63.00 a barrel. Oil prices dropped sharply late last week due in part to remarks from President Trump saying he told OPEC oil prices were too high.
U.S. economic data due for release Monday includes personal income and outlays, and the Texas manufacturing outlook survey.
Technically, the gold bears still have the overall near-term technical advantage. A nine-week-old downtrend line is in still place on the daily bar chart. However, last Friday’s bullish weekly high close is one clue that a market bottom is now in place. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at $1,300.00. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at $1,250.00. First resistance is seen at last week’s high of $1,290.90 and then at $1,300.00. First support is seen at $1,275.00 and then at $1,270.00. Wyckoff’s Market Rating: 4.0
May silver futures bears have the overall near-term technical advantage. Prices are in a nine-week-old downtrend on the daily bar chart. However, last Friday’s bullish weekly high close is one clue that a market bottom is now in place. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the April high of $15.31 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.50. First resistance is seen at last week’s high of $15.04 and then at $15.25. Next support is seen at $14.815 and then at last week’s low of $14.70. Wyckoff’s Market Rating: 3.5.
By Jim Wyckoff
For Kitco News