Gold, Silver Down Amid Little Risk Aversion

(Kitco News) - Gold and silver prices are moderately lower in early U.S. trading Thursday. Bothsafe-haven metals are seeing some selling pressure in a present environment ofnot much risk aversion in the marketplace. The recent rebound in the U.S.dollar index is also a bearish outside market force working against theprecious metals. April Comex gold futures were last down $5.90 an ounce at $1,326.30.March Comex silver was last down $0.137 at $16.48 an ounce.

Worldstock markets were mostly lower overnight. U.S. stock indexes are also pointedto narrowly mixed openings when the New York day session begins.

Themarketplace has mostly digested Wednesday afternoon's FOMC minutes that saidstronger-than-expected U.S. economic growth in recent weeks is keeping theFederal Reserve on pace to keep gradually raising U.S. interest rates. Theminutes prompted choppy trading in the stock and currency markets, and pushedU.S. Treasury yields up. The FOMC minutes contained elements that could bedeemed as both hawkish and dovish on U.S. monetary policy.

Theother key outside market on Thursday morning sees Nymex crude oil prices weakerand trading just above $61.00 a barrel. Oil traders are awaiting today's weeklyU.S. oil stocks report.

U.S.economic data due for release Thursday includes the weekly jobless claimsreport, leading economic indicators, the weekly DOE liquid energy stocksreport, and the Kansas City Fed manufacturing survey.

Technically,Aprilgold futures have seen no serious chart damage inflicted this week.However, more selling pressure on Friday would produce some significanttechnical damage. The gold bulls still have the overall near-term technicaladvantage. Gold bulls' next upside near-term price breakout objective is toproduce a close above solid technical resistance at $1,350.00. Bears' nextnear-term downside price breakout objective is pushing prices below solid technicalsupport at the February low of $1,309.00. First resistance is seen at today'shigh of $1,329.20 and then at Wednesday's high of $1,338.50. First support isseen at today's low of $1,322.90 and then at $1,320.00. Wyckoff's MarketRating: 6.0

March silver futures bears have the slight overall near-term technical advantage.Silver bulls' next upside price breakout objective is closing prices abovesolid technical resistance at $17.00 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at $16.00. Firstresistance is seen at this week's high of $16.745 and then at last week's highof $16.95. Next support is seen at this week's low of $16.34 and then at theFebruary low of $16.13. Wyckoff's Market Rating: 4.5.

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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