(Kitco News) – Gold and silver prices are slightly lower in early U.S. trading Tuesday, on a corrective pullback after good gains scored on Monday. June Comex gold futures were last down $3.30 an ounce at $1,343.60. May Comex silver was last down $0.092 at $16.585 an ounce.
World stock markets were lower overnight, following the sharp losses seen in the U.S. stock market on Monday that saw the indexes hit seven-week lows. Most European markets were closed for a holiday on Monday. U.S. stock indexes are pointed toward higher openings, on corrective bounces, when the New York day session begins.
Fears of a global trade war have been stoked further by China’s retaliatory actions after the U.S. recently slapped the world’s second-largest economy with trade sanctions. While the U.S. and China have begun negotiations to resolve their trade dispute, the world marketplace is nonetheless rattled by the matter. A deterioration in U.S.-China trade relations would likely be a significantly bullish development for safe-haven gold and silver markets.
The key “outside markets” on Tuesday morning see the U.S. dollar index slightly lower. Meantime, Nymex crude oil prices are firmer and trading just above $63.00 a barrel.
U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and Goldman Sachs retail sales reports, the ISM New York report on business, the IBD/TIPP economic optimism index, the global manufacturing PMI and domestic auto industry sales.
Technically, June gold bulls have the overall near-term technical advantage. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the January high of $1,375.50. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at $1,300.00. First resistance is seen at Monday’s high of $1,349.20 and then at last week’s high of $1,362.60. First support is seen at the overnight low of $1,340.20 and then at $1,330.00. Wyckoff’s Market Rating: 6.0
May silver futures bulls and bears are on a level overall near-term technical playing field amid recent choppy and sideways trading. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the March high of $16.895 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at Monday’s high of $16.68 and then at last week’s high of $16.81. Next support is seen at the overnight low of $16.50 and then at last week’s low of $16.195. Wyckoff’s Market Rating: 5.0.
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