Gold, Silver Prices Down On Higher U.S. Dollar, Rising Bond Yields

(Kitco News) - Gold andsilver prices are solidly lower in early U.S. trading Tuesday. Higher worldgovernment bond yields and a resurgent U.S. dollar to start the U.S. tradingweek are working against the precious metals market bulls. April Comex gold futures were last down $14.70 an ounce at $1,341.40. March Comex silver waslast down $0.222 at $16.49 an ounce.

Globalstock markets were mostly lower overnight. U.S. stock indexes are pointedtoward lower openings when the New York day session begins. U.S. and Chinamarkets were closed Monday for holidays. Rising world government bond yieldsare also prompting selling pressure in equities early this week. Tuesday issetting up to be another volatile day in the U.S. stock market. High volatilityin the stock market today could limit selling pressure in the safe-haven goldmarket.

Bitcoinprices are sharply higher today and are continuing a solid rebound from therecent low.

Thekey outside markets on Tuesday morning see the U.S. dollar index firmly higheron a corrective rebound from recent strong selling pressure. The dollar indexdid hit a three-year low last week, with the Euro currency pushing to athree-year high. Meantime, Nymex crude oil prices are firmer early today andtrading just below $62.00 a barrel.

Thereis no major U.S. economic data due for release Tuesday. Traders and investorsare awaiting Wednesday afternoon's minutes from the latest Federal Reserve OpenMarket Committee (FOMC) meeting.

Technically,Aprilgold futures bulls still have the overall near-term technical advantage. Bulls'next upside technical objective is pushing and closing prices above chartresistance at the January high of $1,370.50. Bears' next near-term downsideprice breakout objective is closing prices below solid technical support at $1,320.00.First support is seen at the overnight low of $1,338.80 and then at $1,335.00. Firstresistance is seen at $1,350.00 and then at today's high of $1,344.00.Wyckoff's Market Rating: 6.5

Marchsilver bears have the slight overall near-term technical advantage. The nextupside price breakout objective is closing futures prices above solid technicalresistance at $17.00 an ounce. The next downside price breakout objective forthe bears is closing prices below solid support at the February low of $16.13. Firstresistance is seen at today's high of $16.69 and then at last week's high of $16.95.Next support is seen at the overnight low of $16.42 and then at $16.25.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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