(Kitco News) - Gold prices aremoderately lower in early U.S. trading Tuesday, pressured by a firmer U.S.dollar index and some technical selling. As has been the case for quite sometime, the daily machinations of the USDX are impacting the daily pricemovements in gold and silver. April Comex gold futures were last down $6.60 anounce at $1,311.20. May Comex silver was last down $0.075 at $16.25 an ounce.
Worldstock markets were mixed overnight. U.S. stock indexes are pointed towardmodestly lower openings when the New York day session begins. The technologysectors in world stock markets are under pressure this week after Facebook gaveconsumer data to a firm involved with the Trump presidential campaign. Theworries are that governments will slap restrictions on social media and theirgathering of consumer data. More strong selling pressure in the stock marketsthis week could work to the benefit of the safe-haven gold and silver markets.
Themajor economic data point of the week will be the Federal Reserve’s Open MarketCommittee meeting (FOMC) that begins Tuesday morning and ends Wednesdayafternoon with a statement. Federal Reserve Chairman Jerome Powell also holdshis first press conference after the meeting. Most expect the Fed to slightlyraise U.S. interest rates at this week’s meeting.
TheBank of England holds its monetary policy meeting on Thursday.
Inovernight news, the U.K. reported its consumer price index for February was up0.4% from January and up 2.7%, year-on-year. Those numbers were right in linewith market expectations.
Thekey “outside markets” on Tuesday morning see the U.S. dollar index higher.Trading in the USDX has been choppy and sideways recently. Meantime,Nymex crude oil prices are also higher. Oil prices are in a near-term uptrend on thedaily chart, which is a positive element for the precious metals markets.
U.S.economic data due for release Tuesday is light and includes the weekly JohnsonRedbook and Goldman Sachs retail sales reports.
Technically,Aprilgold bears have the slight overall near-term technical advantage. Pricesare in a five-week-old downtrend on the daily bar chart. Gold bulls' nextupside near-term price breakout objective is to produce a close above solidtechnical resistance at last week’s high of $1,330.50. Bears' next near-termdownside price breakout objective is pushing prices below solid technical supportat $1,300.00. First resistance is seen at the overnight high of $1,318.10 andthen at $1,320.00. First support is seen at Monday’s low of $1,307.40 and thenat the March low of $1,303.60. Wyckoff's Market Rating: 4.5
Maysilver futures bears have the overall near-term technical advantage. Silverbulls' next upside price breakout objective is closing prices above solidtechnical resistance at the March high of $16.895 an ounce. The next downsideprice breakout objective for the bears is closing prices below solid support at$16.00. First resistance is seen at Monday’s high of $16.345 and then at $16.50.Next support is seen at the March low of $16.16 and then at $16.00. Wyckoff'sMarket Rating: 3.0.
By Jim WyckoffFor Kitco News
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