Gold Near Steady As Marketplace Takes In Stride Missile Strikes On Syria

(Kitco News) - Gold prices are trading near unchanged in early U.S. dealings Monday. Themarketplace late last week had fully anticipated the U.S.-led missile attack onSyria Saturday. Thus, markets did not show a big reaction to the weekendmilitary action. June Comex gold futures were last down $0.10 an ounce at $1,347.80.May Comex silver was last down $0.023 at $16.635 an ounce.

Importantly,however, there is still some uncertainty among traders and investors regardingany more U.S. missile strikes against Syria that may be coming, and how Russiawill react to the overall situation. The U.S. is preparing to slap moreeconomic sanctions on Russia. But as of now, the sense of the marketplace isthat the conflict will not escalate. This situation is likely to continue to atleast limit selling interest in safe-haven gold and silver for the near term.

Worldstock markets were mixed overnight. U.S. stock indexes are pointed toward higheropenings when the New York day session begins.

Thekey U.S. data point of the day will be the March retail sales report.Forecasters expect sales in March rose 0.3%.

Thekey “outside markets” on Monday morning see the U.S. dollar index lower. Nymex crude oil prices are also lower and trading just below $66.00 a barrel.

OtherU.S. economic data due for release Monday includes the Empire Statemanufacturing survey, manufacturing and trade inventories, the NAHB housingmarket index, and Treasury international capital data.

Technically,June gold 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 the March low of $1,309.30. First resistance is seen at today’shigh of $1,351.50 and then at $1,362.60. First support is seen at today’s lowof $1,342.80 and then at $1,335.00. 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 $17.00 an ounce. The next downside price breakout objective forthe bears is closing prices below solid support at $16.00. First resistance isseen at $16.69 and then at $16.89. Next support is seen at $16.43 and then atlast week’s low of $16.295. 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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