Modest price pressure on gold, silver, amid risk-on attitudes

By Jim Wyckoff  - Kitco News - April 05, 2021

Gold and silver prices are weaker in early U.S. trading Monday, as traders and investor risk appetite is keener to start the trading week, following an upbeat U.S. economic report released last Friday. The U.S. dollar index has also paused just recently after recent gains, which is also a positive for the metals market bulls. June gold futures were last down $4.40 at $1,724.10 and May Comex silver was last down $0.048 at $24.90 an ounce.

Many global stock markets were closed for the Easter holiday Monday, as well as for a holiday in Asia. U.S. stock indexes are also pointed toward higher openings when the New York day session begins. The Dow and S&P 500 indexes are at or near record highs. Trader and investor attitudes are more positive following a very strong U.S. jobs report last Friday (when U.S. markets were closed) that showed a gain of 916,000 in non-farm payrolls in March. Also, President Biden is pushing his U.S. economic rescue package, called the American Jobs Plan, at a cost of $2.25 trillion over eight years.

The key outside markets today see the U.S. dollar index a bit weaker. Nymex crude oil prices are lower trading around $59.75 a barrel. Meantime, the yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.72%.

U.S. economic data due for release Monday includes the ISM New York report on business, the U.S. services purchasing managers index, the employment trends index, and manufacturers’ shipments and inventories.

Technically, the June gold futures bears have a solid overall near-term technical advantage. However, more price gains in the near term would confirm a bullish double-bottom reversal pattern that would be one chart clue that a market bottom is in place. Bulls’ next upside price objective is to produce a close in April futures above solid resistance at $1,756.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the March low of $1,676.20. First resistance is seen at $1,732.00 and then at $1,740.00. First support is seen at $1,720.00 and then at $1,706.40. Wyckoff's Market Rating: 3.0

May silver futures bears have the firm overall near-term technical advantage. Prices are in a two-month-old downtrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $26.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $23.00. First resistance is seen at the overnight high of $25.115 and then at $25.50. Next support is seen at the overnight low of $24.66 and then at $24.27. Wyckoff's Market Rating: 3.5.

By Jim Wyckoff  - Kitco News - April 05, 2021