(Kitco News) – Gold prices are firmer in early U.S. trading Monday, supported by bullish daily “outside market” forces that see the U.S. dollar index weaker and crude oil prices a bit higher. Silver prices are trading near steady. Gains in the precious metals are being somewhat limited by a slight uptick in U.S. Treasury yields to start a U.S. holiday-shortened trading week. The Good Friday holiday has the U.S. markets closed on that day. April gold was last up $13.70 at $2,173.60. May silver was last up $0.002 at $24.85.
Asian and European stock indexes were mostly weaker overnight. U.S. stock indexes are pointed toward weaker openings when the New York day session begins.
In overnight news, reports today said China stepped in to buy its own currency and sell U.S. dollars, to support its yuan.
Broker SP Angel this morning said in an email dispatch that China and other central banks continue to buy gold. “Recent interest rate moves by major central banks of Japan, Taiwan and Turkey along with the expectations for U.S. rate cuts are making gold increasingly attractive. Investors also remain concerned at the level of high government debt supported by the U.S. and China.”
The key outside markets today see the U.S. dollar index weaker. Nymex crude oil prices are firmer and trading around $81.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching 4.23%.
U.S. economic reports due for release Monday includes the Chicago Fed national activity index, new residential sales and the Texas manufacturing outlook survey.
Technically, the gold futures bulls still have the solid overall near-term technical advantage. A five-week-old uptrend is still in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in April futures above solid resistance at the record high of $2,225.30. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at last week’s low of $2,149.20. First resistance is seen at the overnight high of $2,179.50 and then at Friday’s high of $2,188.00. First support is seen at the overnight low of $2,164.40 and then at Friday’s low of $2,158.40. Wyckoff’s Market Rating: 7.5.
The silver bulls have the overall near-term technical advantage but have faded a bit. Silver bulls’ next upside price objective is closing May futures prices above solid technical resistance at last week’s high of $25.975. The next downside price objective for the bears is closing prices below solid support at $23.50. First resistance is seen at the overnight
high of $25.05 and then at $25.50. Next support is seen at the overnight low of $24.72 and then at last week’s low of $24.58. Wyckoff’s Market Rating: 6.5.
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