Gold sees corrective price jump to start trading next week

Editor’s Note: With so much market volatility, stay on top of the news of the day! Get up to date with our quick summary of today’s must-read news and expert opinions. Sign here!

(Kitco News) – Gold futures prices are moderately high at the beginning of the US session on Monday, in a corrective recovery after last Friday reached an eight-month low. However, buying interest in yellow metal is likely to be suppressed today by the recovery in US stock indices and a firmer dollar index. In addition, the chart for gold remains steadily down in the short term, following the technically negative weekly and monthly bearish close of last Friday. April gold futures rose $ 7.20 to $ 1,736.40 and May Comex silver rose $ 0.435 to $ 26.875 an ounce.

Global stock markets rose overnight. US stock indexes point to higher openings when the New York Day session begins. Global bond market yields declined slightly at the beginning of the trading week, which gave some dynamism to the stock markets that were hit last week, when the 10-year US Treasury yield rose above 1.6 % for a maximum of one year. The 10-year-old US on Monday is currently reaching 1.445%.

President Biden’s $ 1.9 trillion US stimulus bill was approved by the House of Representatives on Saturday and is now going to the Senate. With some unemployment support measures running out in two weeks, the legislators’ focus is to get the bill passed in the Senate and be ready for Biden’s signature as soon as possible.

In the evening news, the February euro zone manufacturing purchasing managers’ index (PMI) stood at 57.9 against 54.8 in January. Meanwhile, China’s private survey Caixin PMI stood at 50.9 in February, down from 51.5 in January. A reading above 50.0 suggests growth in the sector. The US PMI figures were released this morning.

The main “foreign markets” today see Nymex crude oil futures prices higher and trading at around $ 62.25 a barrel. There is an OPEC meeting on Thursday that the market will monitor closely. The US dollar index is slightly higher today.

US economic data due for release on Monday include the US manufacturing purchase manager index, the ISM business report on manufacturing, construction spending, and the global manufacturing purchase manager index.

Technically, the April gold bears in April have a solid general short-term technical advantage amid a seven-week price downtrend on the daily chart. The Bulls’ next bullish price target is to produce a close on the April futures above the solid resistance at $ 1,800.00. The bears’ next short-term low price objective is to push future prices below solid technical support to $ 1,700.00. The first resistance is seen at $ 1,750.00 and then at the $ 1,757.40 night high. The first support is seen at the $ 1,731.60 night low and then at $ 1,725.00. Wyckoff market rating: 2.5

Bulls in the May silver futures still have a slight general short-term technical advantage, but have declined somewhat recently, including a weekly bearish close last Friday. The next bull bull price target is to close prices above solid technical resistance at last week’s high of $ 28.47 an ounce. The bears’ next downside price target is closing prices below solid support at $ 25.00. The first resistance is seen at $ 27.00 and then at today’s high of $ 27.175. The next support is seen at today’s low of $ 26,655 and then at $ 26.50. Wyckoff market rating: 5.5.