Gold, Silver Prices Pull Back From Monday's Advances

(Kitco News) - Gold andsilver prices are slightly lower in early U.S. trading Tuesday, on a correctivepullback after good gains scored on Monday. June Comex gold futures were last down$3.30 an ounce at $1,343.60. May Comex silver was last down $0.092 at $16.585an ounce.

Worldstock markets were lower overnight, following the sharp losses seen in the U.S.stock market on Monday that saw the indexes hit seven-week lows. Most Europeanmarkets were closed for a holiday on Monday. U.S. stock indexes are pointedtoward higher openings, on corrective bounces, when the New York day sessionbegins.

Fearsof a global trade war have been stoked further by China’s retaliatory actionsafter the U.S. recently slapped the world’s second-largest economy with tradesanctions. While the U.S. and China have begun negotiations to resolve theirtrade dispute, the world marketplace is nonetheless rattled by the matter. Adeterioration in U.S.-China trade relations would likely be a significantlybullish development for safe-haven gold and silver markets.

Thekey “outside markets” on Tuesday morning see the U.S. dollar index slightly lower.Meantime, Nymex crude oil prices are firmer and trading just above $63.00 abarrel.

U.S.economic data due for release Tuesday includes the weekly Johnson Redbook andGoldman Sachs retail sales reports, the ISM New York report on business, theIBD/TIPP economic optimism index, the global manufacturing PMI and domesticauto industry sales.

Technically,Junegold bulls have the overall near-term technical advantage. Gold bulls'next upside near-term price breakout objective is to produce a close abovesolid technical resistance at the January high of $1,375.50. Bears' nextnear-term downside price breakout objective is pushing prices below solidtechnical support at $1,300.00. First resistance is seen at Monday’s high of$1,349.20 and then at last week’s high of $1,362.60. First support is seen atthe overnight low of $1,340.20 and then at $1,330.00. Wyckoff's Market Rating: 6.0

Maysilver futures bulls and bears are on a level overall near-term technicalplaying field amid recent choppy and sideways trading. Silver bulls' nextupside price breakout objective is closing prices above solid technicalresistance at the March high of $16.895 an ounce. The next downside pricebreakout objective for the bears is closing prices below solid support at$16.00. First resistance is seen at Monday’s high of $16.68 and then at lastweek’s high of $16.81. Next support is seen at the overnight low of $16.50 andthen at last week’s low of $16.195. Wyckoff's Market Rating: 5.0.

By Jim Wyckoff

For Kitco News

Follow @jimwyckoffjwyckoff@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of 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 to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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