(Kitco News) – Gold and silver prices are moderately higher in early U.S. trading Tuesday. A weaker U.S. dollar index and higher crude oil prices are supporting the precious metals markets today. April gold futures were last up $6.80 an ounce at $1,308.30. May Comex silver was last up $0.083 at $15.405 an ounce.
Palladium prices pushed to a record high above $1,150 a ton overnight, due in part to Russia, the world’s largest producer, banning the export of scrap and tailings of precious metals from May until November.
The key outside markets today see the U.S. dollar index weaker and at a three-week low. The greenback bulls have faded recently. Meantime, Nymex crude oil prices are modestly higher and trading around $59.50 a barrel. Oil prices hit a four-month high overnight.
Asian and European stocks were mostly higher overnight. Risk appetite in the world marketplace remains elevated, as there are no major geopolitical matters jolting the world markets. U.S. stock indexes are pointed toward firmer openings when the New York day session begins.
Trader and investor focus is on the FOMC meeting of the Federal Reserve, which begins Tuesday morning 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. As usual, the marketplace will glean the FOMC statement and Fed Chairman Jerome Powell’s wording for clues on the future path and timing of monetary policy changes.
The unresolved Brexit matter continues simmer on the back burner of the world marketplace. The latest development saw a Member of Parliament block for voting a plan presented by Prime Minister Theresa May. It’s becoming more likely that the U.K.’s exit from the European Union will be a long, drawn-out affair.
In other overnight news, the closely watched German Zew economic expectations index rose to -3.4 in March from -13.4 in February. The March number beat trade expectations for a reading of -10.0.
U.S. economic reports due for release Tuesday include the weekly Johnson Redbook and Goldman Sachs retail sales reports, and manufacturers’ shipments and inventories.
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 $1,300.00 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 last week’s high of $15.55 and then at $15.75. Next support is seen at Monday’s 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