(Kitco News) – Gold and silver prices are moderately lower in early-afternoon U.S. trading Monday, on downside corrections following gains posted last Friday. Investor and traders are also still exhibiting keener risk appetites worldwide, which is also a negative for the safe-haven metals. April gold futures were last down $7.80 an ounce at $1,291.50. May Comex silver was last down $0.084 at $15.265 an ounce.
Traders and investors are mostly upbeat to start the trading week, following dour economic data out of the U.S. and China late last week. The U.S jobs report last Friday showed a sharp drop in the growth of non-farm payrolls, while China’s latest import and export numbers were down.
However, the U.S.-China trade talks appear to be moving closer to a formal agreement following a report over the weekend that the head of China’s central bank said his country will not devalue the yuan to boost China’s exports.
U.S. Federal Reserve Chairman Jerome Powell, in a rare TV interview on Sunday, reiterated the U.S. economic outlook is favorable and said there is no need to raise or lower interest rates at present.
The key outside markets today see the U.S. dollar index near steady and not far below last week’s new high for the year. The overall strength of the greenback this year has been a negative element for the metals markets. Meantime, Nymex crude oil prices are firmer and trading around $56.50 a barrel. Crude has been trading sideways for the past two weeks. The International Energy Agency today reported the U.S. will become the world’s largest oil exporter by 2021—surpassing both Saudi Arabia and Russia. The U.S. is already the world’s largest oil producer, due to the boom in shale-oil production.
Technically, April gold futures prices closed near the session low today. The bulls have the slight overall near-term technical advantage but need to show fresh power soon to keep it. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,320.00. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at $1,275.00. First resistance is seen at $1,300.00 and then at last week’s high of $1,301.30. First support is seen at Friday’s low of $1,285.60 and then at last week’s low of $1,280.80. Wyckoff’s Market Rating: 5.0
May silver futures prices closed near mid-range today. The silver bulls and bears are on a level overall near-term technical playing field. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $15.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.75. First resistance is seen at last week’s high of $15.385 and then at $15.50. Next support is seen at $15.15 and then at $15.00. Wyckoff’s Market Rating: 5.0.
May N.Y. copper closed up 65 points at 290.00 cents today. Prices closed near mid-range today. The copper bulls still have the overall near-term technical advantage. Prices are in a nine-week-old uptrend on the daily bar chart. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at the February high of 297.75 cents. The next downside price objective for the bears is closing prices below solid technical support at 275.00 cents. First resistance is seen at 292.50 cents and then at last week’s high of 295.50 cents. First support is seen at last week’s low of 287.45 cents and then at 285.00 cents. Wyckoff’s Market Rating: 6.5.
By Jim Wyckoff
For Kitco News