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(Wallace Refiners) – Gold and silver prices are lower again in early U.S. trading Monday, with gold hitting a 10-month low. The precious metals are pressured by rising government bond yields and an up-trending U.S. dollar index. April gold futures were down $11.10 at $1,687.40 and May Comex silver was last down $0.132 at $25.15 an ounce.
Global stock markets were mixed overnight, with Asian indexes mostly lower and European indexes mostly higher. Asian shares were pressured by more overtures by the Chinese government that suggest consumer debt and stock market speculation will be reined in. U.S. stock indexes are pointed toward weaker openings when the New York day session begins. Rising government bond yields remain in the spotlight to start the trading week and remain a bearish element for stock markets. The U.S. 10-year Treasury note was trading around 1.61% this morning.
Tensions are rising in the Middle East after a drone attack by Iran-backed Houthi rebels on a major Saudi Arabian oil facility over the weekend. The Saudis said the attack will not impact overall Saudi oil production levels. Still, the matter deserves close monitoring as any further Saudi Arabia-Iran military conflicts could impact oil flowing out of the Persian Gulf.
In other overnight news, China reported its exports rose a whopping 60.6% in the January-February period, while imports were up 22.2%, year-on-year. Both numbers handily beat market expectations and further suggest the world’s second-largest economy has shifted into high gear.
The key “outside markets” today see Nymex crude oil futures prices higher, hitting a 14-month high, and trading around $66.25 a barrel. Meantime, the U.S. dollar index is higher and hit another 3.5-month high overnight.
U.S. economic data due for release Monday includes the employment trends index and monthly wholesale trade.
Technically, the April gold futures bears have the solid overall near-term technical advantage amid a two-month-old price downtrend in place on the daily chart. Bulls’ next upside price objective is to produce a close in April futures above solid resistance at this week’s high of $1,757.40. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,650.00. First resistance is seen at $1,700.00 and then at the overnight high of $1,712.00. First support is seen at the overnight low of $1,681.30 and then at $1,675.00. Wyckoff’s Market Rating: 2.0
May silver futures bears have the overall near-term technical advantage. Prices are in a five-week-old downtrend on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $27.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $24.00. First resistance is seen at $25.50 and then at $26.00. Next support is seen at last week’s low of $24.845 and then at $24.50. Wyckoff’s Market Rating: 4.0.
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