Gold Prices Continue To Slide Amid Risk-On Trading Attitudes

(Kitco News)- Goldprices are again moderately lower in early U.S. trading Monday. Growing riskappetite in the world marketplace at present is prompting selling pressure inthe safe-haven metals. U.S. and world stock markets have made solid reboundsfrom the sharp losses seen in January and February. April Comex gold futures were last down $6.20 an ounce at $1,317.80. May Comex silver was last down $0.123at $16.485 an ounce.

Worldstock markets were mostly higher overnight, following the lead of the U.S.stock market on Friday, which rallied in the wake of an upbeat U.S. employmentreport that showed healthy jobs gains amid inflation that is not deemedproblematic. U.S. stock indexes are pointed toward higher openings when the NewYork day session begins.

Themarketplace is still digesting last week’s U.S. implementation of trade tariffson steel and aluminum. The European Union wants to talk to the U.S. on thematter, while China warned it will retaliate for the U.S. tariffs. Thissituation could flare up further, which could dent world stock marketbullishness.

Thekey “outside markets” on Monday morning see the U.S. dollar index slightly higherand Nymex crude oil prices weaker.

U.S.economic data due for release Monday includes the employment trends index andthe monthly Treasury budget statement.

Technically,April gold futures bulls and bears are on a level overall near-term technicalplaying field. 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 solidtechnical support at $1,300.00. First resistance is seen at today’s high of $1,325.00and then at $1,330.00. First support is seen at last week’s low of $1,313.20and then at $1,309.00. Wyckoff's Market Rating: 5.0

Maysilver futures bears have the overall near-term technical advantage. Silverbulls' next upside price breakout objective is closing prices above solidtechnical resistance at the February high of $17.04 an ounce. The next downsideprice breakout objective for the bears is closing prices below solid support at$16.00. First resistance is seen at today’s high of $16.635 and then at $16.75.Next support is seen at last week’s low of $16.33 and then at the March low of$16.16. Wyckoff's Market Rating: 4.0.

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.

Gold stocks down on metal decline

Huge quantifiable rise in geopolitical, economic and trade risks

Platinum clearly ahead of palladium for first time in seven years

Gold majors take the lead

Gold ratios versus silver, platinum drop, but still above recent averages