Gold, Silver Gain On Bullish Outside Markets

(Kitco News) - Gold and silver prices are trading moderately higher in early U.S. dealings Monday.The precious metals are supported by a weaker U.S. dollar index and a reboundin crude oil prices. Gains in the metals are being limited by a rebound inworld stock markets to start the trading week. April Comex gold futures werelast up $5.10 an ounce at $1,320.90. March Comex silver was last up $0.216 at$16.35 an ounce.

Worldstock markets were higher overnight, following sharp losses seen last week.U.S. stock indexes are pointing toward solidly higher openings when the NewYork day session begins. The big question on traders’ minds to start the weekis if the recent period of very high daily price volatility has ended. Priceaction the first couple days of this week will go a long way in answering thatquestion. Still, major chart damage has been inflicted on the U.S. stockindexes to suggest those markets have topped out.

Thekey “outside markets” on Monday morning see the U.S. dollar index weaker on acorrective pullback from recent good gains. However, there are early technicalclues the USDX has put in a near-term market bottom. Meantime, Nymex crude oil prices are firmer on a corrective bounce from recent solid losses and on therebound in world stock markets. However, there are chart clues the oil markethas topped out for at least the near term.

U.S.economic data due for release Monday is light and includes the monthly Treasurybudget statement. President Trump also releases his fiscal year 2019 budgetproposal.

Technically,Aprilgold futures bulls and bears are on a level overall near-term technicalplaying field. Prices are still in a fledgling downtrend. Bulls’ next upsidetechnical objective is pushing and closing prices above chart resistance at $1,350.00.Bears' next near-term downside price breakout objective is closing prices belowsolid technical support at $1,300.00. First support is seen at today’s low of $1,316.30and then at last week’s low of $1,309.00. First resistance is seen at today’shigh of $1,330.00 and then at $1,335.00. Wyckoff’s Market Rating: 5.0

Marchsilver bears have the firm overall near-term technical advantage. Prices are ina steep, fledgling downtrend. The next upside price breakout objective isclosing futures prices above solid technical resistance at $17.00 an ounce. Thenext downside price breakout objective for the bears is closing prices belowsolid support at $16.00. First resistance is seen at today’s high of $16.45 andthen at $16.50. Next support is seen at today’s low of $16.28 and then at lastweek’s low of $16.19. Wyckoff's Market Rating: 3.0.

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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