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(Wallace Refiners) – Gold and silver prices are lower in early U.S. trading Monday, pressured by some fresh chart-based selling and by global stock markets that are stable amid bond yields declining a bit to start the trading week. April gold futures were last down $5.90 at $1,735.50 and May Comex silver was last down $0.561 at $25.76 an ounce.
Global stock markets were mixed overnight. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins. There is not a lot of risk aversion in the global marketplace at present and that’s bearish for the safe-haven metals.
In overnight news, the Turkish lira dropped around 10% against the U.S. dollar Monday following the abrupt firing of Turkey’s top central bank official Saturday by Turkey’s president. While this news has not significantly impacted the currency and financial markets, traders will keep a close eye on the Turkish lira in the near term.
The key “outside markets” today see Nymex crude oil futures prices higher and trading around $61.50 a barrel this morning. Meantime, the U.S. dollar index is weaker early today. The U.S. Treasury 10-year note yield is fetching 1.67% Monday morning after hitting 1.75% last week.
U.S. economic data due for release Monday includes the Chicago Fed national activity index and existing home sales.
Technically, the April gold futures bears have the overall near-term technical advantage. However, a nine-week-old price downtrend line on the daily chart was negated last week, to begin to suggest a market bottom is in place. Bulls’ next upside price objective is to produce a close in April futures above solid resistance at $1,775.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the March low of $1,673.30. First resistance is seen at the overnight high of $1,747.00 and then at the March high of $1,754.20. First support is seen at the overnight low of $1,726.40 and then at last week’s low of $1,716.60. Wyckoff’s Market Rating: 3.5
May silver futures bears have the slight overall near-term technical advantage. Prices are in a seven-week-old downtrend on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $27.50 an ounce. The next downside price objective for the bears is closing prices below solid support at the March low of $24.845. First resistance is seen at $26.00 and then at the overnight high of $26.35. Next support is seen at the overnight low of $25.45 and then at $25.00. Wyckoff’s Market Rating: 4.5.
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