Gold sees slight price gains as bulls buy the dip

(Kitco News  Tues. April 25th  2023) – Gold prices have recovered modest overnight losses and are holding slight gains in early U.S. trading Tuesday. Silver prices are lower. Gold is seeing some buying interest from bargain hunters buying the dip and as U.S. Treasury yields have declined a bit this week. However, a higher U.S. dollar index and lower crude oil prices are negative daily influences on the metals markets that are limiting buying interest in gold. June gold was last up $2.80 at $2,002.60 and May silver was down $0.381 at $24.93.

Global stock markets were mostly lower overnight. U.S. stock indexes are pointed toward lower openings when the New York day session begins. Focus of stock traders this week is on the release of a slew of corporate earnings reports.

Risk appetite has not been robust recently, amid worries about a “higher for longer” Fed interest rate cycle. There are still marketplace concerns about a U.S. economic recession being on the doorstep. The clues are there, including an inverted U.S. Treasury yield curve. Reads a Wall Street Journal headline today: “Sliding diesel prices signal warning for U.S. economy.” Lately, the precious metals market bulls have been focused more on the bearish aspects of global economic weakness meaning less demand for metals.

The banking turmoil that roiled the marketplace in March has simmered down, at least for the moment. But there are worries banking problems will resurface. A Barrons headline today says: “First Republic laid bare the extent of banking turmoil; brace for more jitters.”

Dennis Gartman remains bullish on gold, recommends University of Akron endowment fund increase its exposure to 5%

The key outside markets today see the U.S. dollar index modestly higher. Nymex crude oil prices are lower and trading around $77.75 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching 3.443%.

U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and chain store retail reports, the monthly house price index, the Richmond Fed business survey, the consumer confidence index, and new residential sales.

Gold Price in US Dollars

Technically, the gold futures bulls have the solid firm near-term technical advantage. Prices are in a six-week-old uptrend on the daily bar chart, but just barely. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at the April high of $2,063.40. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the April low of $1,965.90. First resistance is seen at today’s high of $2,011.40 and then at $2,018.00. First support is seen at this week’s low of $1,984.40 and then at last week’s low of $1,980.90.

The silver bulls have the firm overall near-term technical advantage. Prices are in an 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 $23.50. First resistance is seen at today’s high of $25.435 and then at last week’s high of $25.71. Next support is seen at last week’s low of $24.715 and then at $24.50.

Posted by :

Jack Dempsey. President

401 Gold Consultants LLC

jdemp2003@gmail.com