Modest price gains for gold ahead of busy U.S. data day

New York (Mar 16)  Gold prices are modestly higher in early U.S. trading Tuesday, on some more short covering by the shorter-term futures traders and some perceived bargain hunting in the cash market. It's a very active day for U.S. economic data, which will very possibly move the markets, including the metals. April gold futures were last up $4.70 at $1,734.10 and May Comex silver was last down $0.093 at $26.195 an ounce.

Global stock markets were mixed but mostly higher overnight. U.S. stock indexes are pointed toward mixed openings when the New York day session begins. The Dow and the S&P 500 are trading at record highs, which continues to constrain demand for the safe-haven metals.

It's a very busy day for U.S. economic data released Tuesday, including the weekly Goldman Sachs and Johnson Redbook retail sales reports, retail sales, import and export prices, industrial production and capacity utilization, the NAHB housing market index, and manufacturing and trade inventories. But the highlight of this busy day will be retail sales, seen coming in at down 0.5% in February, likely due to inclement weather conditions during the month.

The Federal Reserve's two-day Open Market Committee (FOMC) meeting begins Tuesday morning and ends Wednesday afternoon with a statement and new U.S. economic projections. While no change in U.S. monetary policy is expected at this week's meeting, traders will be closely scrutinizing wording on the Fed's economic growth and inflation prospects.

The key "outside markets" today see Nymex crude oil futures prices lower and trading around $64.40 a barrel. Meantime, the U.S. dollar index is just a bit higher early today. The U.S. Treasury 10-year Treasury note is presently yielding 1.603%.

Technically, the April gold futures bears have the firm overall near-term technical advantage amid a nine-week-old price downtrend in place on the daily chart. Bulls' next upside price objective is to produce a close in April futures above solid resistance at $1,750.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the March low of $1,673.30. First resistance is seen at last week's high of $1,738.00 and then at $1,750.00. First support is seen at this week's low of $1,719.20 and then at $1,700.00.

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