Gold, Silver Prices Down Amid Return of Risk Appetite
(Kitco News) - Gold and silver prices are lower in early U.S. trading Tuesday. The safe-haven metalsare pressured by more robust trader and investor risk appetite in themarketplace early this week, as evidenced by rallying world equities markets. June Comex gold futures were last down $5.70 an ounce at $1,345.00. May Comex silver was last down $0.047 at $16.63 an ounce.
Worldstock markets were mostly higher overnight. U.S. stock indexes are pointedtoward higher openings when the New York day session begins. Focus has turnedfrom geopolitics to generally strong global corporate earnings reports.
Still,U.S.-Russia-Syria tensions have not just disappeared. This matter will continueto limit the downside in gold and silver markets in the near term. And anyflare-up in the situation would likely quickly boost the metals. The Group ofSeven industrial nations (G-7) on Tuesday came out with a statement thatsupported the U.S.-led missile strikes on Syria and condemned the use ofchemical weapons in warfare.
Inother overnight news, China’s annual economic growth came in at 6.8% in thefirst quarter, which was slightly higher than expected and on pace with 2017’sgross domestic product growth rate. This is good news for precious metalsmarket bulls, as China is a major metals importer.
Thekey “outside markets” on Tuesday morning see the U.S. dollar index trading nearsteady. Nymex crude oil prices are also near steady and trading just above$66.00 a barrel.
U.S.economic data due for release Tuesday includes new residential construction,the weekly Johnson Redbook and Goldman Sachs retail sales reports, andindustrial production and capacity utilization.
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.2924175530478188)
Technically,Junegold 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 atthis week’s high of $1,353.50 and then at $1,362.60. First support is seen at Monday’slow of $1,342.80 and then at $1,335.00. Wyckoff's Market Rating: 6.0
![Live 24 hours silver chart [ Kitco Inc. ]](http://www.kitco.com/images/live/silver.gif)
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 Monday’s high of $16.77 and then at $16.89. Next support is seen at$16.50 and then at last week’s low of $16.295. Wyckoff's Market Rating: 5.0.
By Jim WyckoffFor Kitco News
Follow @jimwyckoff
jwyckoff@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.