Gold, Silver See Corrective Pullbacks From Good Gains Tuesday

Editor's Note: Gold and silver has been, at best, a frustrating trade. Exclusive to Kitco News, expert trader, Todd "Bubba" Horwitz, chief market strategist and founder of 'Bubba Trading provides a strategy investors can use in a range-bound gold price environment. Sign up before March 10 for the Kitco News Weekly Rundown newsletter to receive Horwitz's exclusive report and trading strategy.

(Kitco News) - Gold andsilver prices aremodestly weaker in early U.S. trading Wednesday. The metals are seeing a minordownside correction following the good gains scored on Wednesday. April Comex gold futures were last down $4.00 an ounce at $1,331.20. May Comex silver waslast down $0.134 at $16.65 an ounce.

Thejust-released ADP national employment report for February showed a rise of235,000. Forecasters expected the ADP number to come in at up 200,000. Goldprices dipped just a bit on the news. This report suggests Friday's moreimportant jobs report from the U.S. Department of Labor will come in strong,too.

Worldstock markets were mostly lower overnight. U.S. stock indexes are pointedtoward solidly lower openings when the New York day session begins. The stock,financial and currency markets are somewhat spooked after White House chiefeconomist Gary Kohn announced his resignation amid the increasinglyprotectionist rhetoric coming from U.S. President Donald Trump.

Theresignation of Kohn suggests Trump is pushing forward with his plan to slaptariffs on imported aluminum and steel. Kohn's departure heightened thespeculation that there is keen turmoil presently in the White House west wing.

Inovernight news, the European Union warned the U.S. that it will retaliate toany U.S. trade tariffs levied against the EU.

TheEuro zone reported its fourth-quarter gross domestic product at up 0.6% fromthe third quarter and up 2.7%, year-on-year. Those numbers were right in linewith market expectations.

Thekey outside markets on Wednesday morning see the U.S. dollar index lower. Nymex crude oil prices are lower and trading just above $62.00 a barrel.

U.S.economic data due for release Wednesday includes the weekly MBA mortgageapplications survey, the ADP national employment report, revised productivityand costs, the international trade in goods and services report, the FederalReserve's beige book, consumer installment credit, and the weekly DOE liquidenergy stocks report.

Technically,Aprilgold futures bulls have the slight overall near-term technical advantage.Gold bulls' next upside near-term price breakout objective is to produce aclose above solid technical resistance at $1,350.00. Bears' next near-termdownside price breakout objective is pushing prices below solid technicalsupport at $1,300.00. First resistance is seen at today's high of $1,342.00 andthen at $1,350.00. First support is seen at this week's low of $1,318.30 andthen at $1,309.00. Wyckoff's Market Rating: 5.5

May silver 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 this week's high of $16.895 and then at $17.00.Next support is seen at $16.50 and then at this week's low of $16.37. Wyckoff'sMarket 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