Gold Weaker On Lack of Fresh, Bullish Inputs

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(Kitco News) - Gold pricesare modestly lower again in early U.S. trading Thursday. A presently stablegeopolitical environment is keeping buyers of the safe-haven metal squelched. April Comex gold futures were last down $2.00 an ounce at $1,325.60. May Comex silver was last down $0.009 at $16.485 an ounce.

Themain event of the trading day Thursday is the European Central Bank’s regularmonetary policy meeting. No change in interest rates or monetary policy wasannounced at the meeting’s conclusion. No changes were expected. The wording ofthe ECB statement left out the reference that it would increase itsquantitative easing if needed, which some are deeming as just a bit hawkish.ECB President Mario Draghi’s press conference could offer more clues on thefuture path and timing of ECB monetary policy.

TheBank of Japan holds its monetary policy meeting on Friday.

Worldstock markets were mixed to higher overnight. U.S. stock indexes are pointedtoward firmer openings when the New York day session begins.

Stock,currency and financial markets were somewhat assuaged overnight on reports theU.S. government could implement so-called “carve-outs” for certain countries(namely Canada and Mexico) when it imposes tariffs on steel and aluminum, asearly as this weekend. Now it appears the U.S. has its sights set on what manybelieve to be the main problem in world trade: China.

Thekey outside markets on Thursday morning see the U.S. dollar index near steady. TheUSDX bears have the firm near-term technical advantage. Nymex crude oil pricesare also near steady and trading just above $61.00 a barrel. Crude oil has thebearish weight of rising U.S. crude oil stocks and record U.S. oil productionlevels, as reported by the U.S. Department of Energy on Wednesday.

U.S.economic data due for release Thursday includes the weekly jobless claimsreport, the Challenger job-cuts report, and monthly chain store sales.

Technically,Aprilgold futures bulls have the slight overall near-term technical advantage,but need to show fresh power soon to keep it. Gold bulls' next upside near-termprice breakout objective is to produce a close above solid technical resistanceat $1,350.00. Bears' next near-term downside price breakout objective ispushing prices below solid technical support at $1,300.00. First resistance isseen at $1,330.00 and then at $1,335.00. First support is seen at this week’slow of $1,318.30 and then at $1,309.00. Wyckoff's Market Rating: 5.5

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 $16.60 and then at $16.75. Next support isseen at this week’s low of $16.37 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.

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