(Kitco News) – Gold and silver prices are slightly higher in lackluster early U.S. trading Monday. A weaker U.S. dollar index on this day is working in favor of the precious metals market bulls. April gold futures were last up $1.40 an ounce at $1,304.30. May Comex silver was last up $0.011 at $15.335 an ounce.
Asian and European stocks were mostly higher overnight. There were no major geopolitical developments during the weekend to move the markets, and trading is subdued to start the week. U.S. stock indexes are pointed toward mixed openings when the New York day session begins.
Trader and investor focus is turning to this week’s FOMC meeting of the Federal Reserve, which begins Tuesday and ends Wednesday afternoon with a statement. The FOMC is not expected to change its monetary policy at this meeting. The Fed has become more dovish the past few months.
The Brexit matter continues to play out but it’s on the back burner of the world marketplace. The U.K. has no “soft Brexit” deal in place ahead of the March 29 “hard exit” (no deal) for the U.K. to leave the European Union. Look for Prime Minister Theresa May to soon propose another plan for a soft Brexit to the Parliament.
The key outside markets today see the U.S. dollar index weaker. Nymex crude oil prices are modestly lower and trading just above $58.00 a barrel. Oil prices hit a four-month high last Friday.
U.S. economic reports due for release Monday are light and include the NAHB housing market index.
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 $1,320.00. 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 last week’s high of $1,311.60 and then at $1,317.00. First support is seen at the overnight low of $1,298.00 and then at last week’s low of $1,290.60. Wyckoff’s Market Rating: 6.5
May silver futures bulls have the slight overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $15.75 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 $15.47 and then at last week’s high of $15.55. Next support is seen at the overnight low of $15.22 and then at last week’s low of $15.135. Wyckoff’s Market Rating: 6.0.
By Jim Wyckoff
For Kitco News