Gold price firmer as big U.S. data week looms

(Kitco News, Mon. April 29th, 2024) – Gold and silver prices are modestly higher in early U.S. trading Monday. Trading is quieter to start the work week, as market participants are bracing for a very busy week for U.S. economic data that will almost surely significantly move the markets. June gold was last up $5.60 at $2,352.80. May silver was last up $0.148 at $27.40.

This week’s U.S. data highlights include the Federal Reserve’s Open Market Committee meeting that begins Tuesday morning and ends Wednesday afternoon with a statement and press conference from Fed Chair Jerome Powell. No changes in monetary policy are expected, but the FOMC statement and Powell’s presser will be very closely scrutinized by the marketplace. Recent warmer U.S. inflation data has prompted traders and analysts to dial back their timelines on interest rate cuts from the Fed, if they come at all this year. Former Fed official Roger Ferguson said on CNBC today that he expects Powell to sound a hawkish tone this week. A Wall Street Journal headline today reads: “High rates appear on track to persist long term.” On Friday morning comes the U.S. jobs report from the Labor Department.

Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed to toward slightly higher openings when the New York day session begins. The U.S. stock index bulls have stabilized their markets the past week, after they spent three weeks trending down. Still, veteran stock market watchers know the old saying, “Sell in May and go away” until after Labor Day.

The key outside markets today see the U.S. dollar index lower. Nymex crude oil prices are slightly down and trading around $83.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is fetching 4.64%.

U.S. economic data due for release Monday includes the Texas manufacturing outlook survey.

Technically, the gold futures bulls have the firm overall near-term technical advantage. However, a price uptrend on the daily bar chart has stalled out. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at $2,400.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,250.00. First resistance is seen at Friday’s high of $2,364.40 and then at $2,375.00. First support is seen at the overnight low of $2,331.00 and then at $2,325.00.

The silver bulls have the firm overall near-term technical advantage. However, a price uptrend on the daily bar chart has stalled out. Silver bulls’ next upside price objective is closing May futures prices above solid technical resistance at last week’s high of $28.795. The next downside price objective for the bears is closing prices below solid support at $26.00. First resistance is seen at Friday’s high of $27.745 and then at $28.00. Next support is seen at this the overnight low of $26.96 and then at last week’s low of $26.715.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com