Gold Prices Weaker On Technical Selling

London (Mar 19)  Gold prices are modestly down in early U.S. trading Monday. Chart-based selling pressure is featured to start the trading week, as a near-term price downtrend is in place on the daily chart. April Comex gold futures were last down $2.40 an ounce at $1,309.90. May Comex silver was last down $0.042 at $16.23 an ounce.

There was more turmoil in the Trump administration over the weekend, amid new accusations against President Trump’s administration after an FBI official was fired. However, the marketplace is not reacting much, as the situation has become almost routine.

The major economic data point of the week will be the Federal Reserve’s Open Market Committee meeting (FOMC) that begins Tuesday morning and ends Wednesday afternoon with a statement. Federal Reserve Chairman Jerome Powell also holds his first press conference after the meeting. Most expect the Fed to slightly raise U.S. interest rates at this week’s meeting.

The Bank of England holds its monetary policy meeting on Thursday.

World stock markets were mostly lower overnight. U.S. stock indexes are pointed toward lower openings when the New York day session begins. The specter of a protectionist U.S. trade policy and a rise in U.S. interest rates this week are negatives for equity markets.

The key “outside markets” on Monday morning see the U.S. dollar index near steady. Trading in the USDX has been choppy and sideways recently. Meantime, Nymex crude oil prices are also slightly lower.

There is no major U.S. economic data due for release Monday.

Live 24 hours gold chart [Kitco Inc.]

Technically, April gold bears have gained the slight overall near-term technical advantage. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at last week’s high of $1,330.50. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,300.00

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