(Kitco News) – Gold prices were firm in early U.S. trading on Monday, supported by a bullish daily “external market” that predicts a decline in the U.S. dollar index and a slight increase in oil prices. Silver prices have remained mostly stable. Precious metals’ gains are limited to some extent by a slight rise in US Treasury yields ahead of the start of the US holiday-shortened trading week. US markets will be closed on this day due to the Good Friday holiday. April gold was last up $13.70 to $2,173.60. May silver was last up $0.002 at $24.85.
Stock indexes in Asia and Europe were mostly lower overnight. As intraday trading begins in New York, U.S. stock indexes are expected to start on a downtrend.
On the news tonight, it was reported today that China has stepped in to support the renminbi by buying its currency and selling the US dollar.
Broker SP Angel said in an email this morning that China and other central banks continue to buy gold. “Recent interest rate moves by major central banks in Japan, Taiwan and Turkey, as well as expectations for rate cuts in the US, are making gold increasingly attractive. Investors are also seeing high levels of government debt supported by the US and China. I still have concerns.”
The US dollar index is expected to decline in major external markets today. Nymex crude oil prices are firm, trading around $81.25 per barrel. The benchmark 10-year U.S. Treasury bond currently yields 4.23%.
The U.S. economic report scheduled for Monday will include the Chicago Fed’s National Activity Index, new home sales and the Texas Manufacturing Outlook Survey.
Technically, gold futures bulls still have an overall near-term technical advantage. On the daily bar chart, the upward trend from 5 weeks ago is still continuing. The bulls’ next price objective is to push the April futures closing price above solid resistance at the all-time high of $2,225.30. The Bears’ next near-term downside objective is to push the futures price below last week’s low of solid technical support at $2,149.20. Initial resistance is seen at the overnight high of $2,179.50 and Friday’s high of $2,188.00. Initial support is seen at the overnight low of $2,164.40 and Friday’s low of $2,158.40. Wyckoff Market Rating: 7.5.
Silver bulls have an overall technical advantage in the short term, but it’s a bit faded. The next upside objective for silver bulls is for May futures prices to close above solid technical resistance at last week’s high of $25.975. The next downside objective for the bears is a close below the solid support at $23.50.The first resistance is seen at night
High of $25.05, then $25.50. The next support is seen at the overnight low of $24.72 and last week’s low of $24.58. Wyckoff Market Rating: 6.5.
(Hello! I think my “Markets Front Burner” weekly email report is my best writing and analysis because it allows me to look beyond the market and make market price predictions .Plus, I’ll throw in educational features to move the markets so you can climb the ladder of trading/investing success – and it’s free! Email me at jim@jimwyckoff.com Add your email address to my Front Burner list.)
Disclaimer: The views expressed in this article are those of the author and may not reflect the views of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided. However, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation for the exchange of products, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept liability for losses and/or damages arising from the use of this publication.
