Price gains for gold on technical buying, lower USDX

(Kitco News, April 11th, 2023) – Gold and silver prices are firmer in early U.S. trading Tuesday, supported by chart-based buying amid bullish technicals and by a weaker U.S. dollar index on this day. April goldwas last up $12.90 at $2,001.60 and May silver is up $0.173 at $25.085.

Global stock markets were mostly firmer overnight. U.S. stock indexes are pointed toward slightly lower openings when the New York day session begins. Risk appetite is slowly creeping back into the marketplace as traders and investors are gaining confidence the U.S. and European banking turmoil has passed.

In overnight news, China’s inflation eased again in March. Consumer prices were up 0.7%, year-on-year, which is the lowest rate since September of 2021. Meantime, the International Monetary Fund has warned that higher global interest rates are just transitory and that low interest rates will likely return. A Barron’s headline today reads: “The inflation wave may be cresting. What’s next for Fed rates.”

The U.S. data point of the week will be Wednesday morning’s consumer price index report for March, which is expected to show an annual rise of 5.1%, compared to a rise of 6.0% in the February report.

Gold is a strategic buy under $2,000 – WidsomTree’s Nitesh Shah

The key outside markets today see the U.S. dollar index lower. Nymex crude oil prices are slightly down and trading around $79.50 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching 3.396%.

U.S. economic data due for release Tuesday is light and includes the weekly Johnson Redbook and chain store retail indexes.

Gold Price in US Dollars

Technically, the gold futures bulls have the solid overall near-term technical advantage. Prices are in an uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in April futures above solid resistance at the record high of $2,078.80. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at last week’s low of $1,950.00. First resistance is seen at Monday’s high of $2,006.60 and then at $2,014.90. First support is seen at Monday’s low of $1,984.00 and then at $1,979.00.

The silver bulls have the solid overall near-term technical advantage. Prices are in a steep uptrend on the daily bar chart. Silver bulls’ next upside price objective is closing May futures prices above solid technical resistance at $27.00. The next downside price objective for the bears is closing prices below solid support at $23.00. First resistance is seen at last week’s high of $25.295 and then at $25.50. Next support is seen at Monday’s low of $24.775 and then at $24.50.

Posted by :

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com