Gold, Silver Prices Down Amid Little Risk Aversion

(Kitco News) – Gold and silver prices are moderately lower in early U.S. trading Monday. The safe-haven metals continue to suffer from a lack of turbulence on the geopolitical front that would provide some demand for them. June gold futures were last down $4.80 an ounce at $1,290.30. May Comex silver was last down $0.088 at $14.875 an ounce.

Asian and European stock indexes were steady to mixed in quieter dealings overnight. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins. There are presently no major geopolitical issues in the world marketplace to rattle the markets and trader and investor attitudes remains generally upbeat, as evidenced by most world stock markets trending sideways to higher at present.

Focus of traders and investors this week will be on U.S. corporate earnings reports. Big bank reports issued last Friday were surprisingly upbeat.

U.S.-China trade talks will continue this week, with most market watchers thinking good progress has been made on the matter and both sides are close to a final agreement.

The key outside markets today find the U.S. dollar index weaker. Meantime, Nymex crude oil prices are lower and trading around $63.25 a barrel.

U.S. economic reports due for release Monday include the Empire State manufacturing survey, and Treasury international capital data.

Technically, the gold bulls still have the slight overall near-term technical advantage. However, a downtrend line is still in place on the daily bar chart and has turned back the early-week rally in prices. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at the April high of $1,314.70. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at the April low of $1,284.90. First resistance is seen at the overnight high of $1,295.20 and then at $1,300.00. First support is seen at the overnight low of $1,287.70 and then at $1,284.90. Wyckoff’s Market Rating: 5.5

May silver futures bears have the overall near-term technical advantage. Prices are in a seven-week-old downtrend on the daily bar chart. 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 $15.00 and then at Friday’s high of $15.065. Next support is seen at the April low of $14.845 and then at $14.75. Wyckoff’s Market Rating: 4.0.

By Jim Wyckoff
For Kitco News


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