Gold, silver see slight price pressure as U.S. dollar surges

 LONDON (APR 28)  Gold and silver prices are weaker in early U.S. Trading Thursday and hit nine-week lows overnight. The precious metals markets have been pummeled recently by a strong U.S. dollar index that hit another two-year high overnight, and by rising bond yields. June gold futures were last down $2.10 at $1,886.70 and May Comex silver was last down $0.365 at $23.08 an ounce.

Global stock markets were mostly higher overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. The U.S. stock index bulls are working to shore up their markets after getting shellacked on Tuesday. The major indexes remain in near-term downtrends on the daily charts, suggesting the path of least resistance for prices remains sideways to lower.
This week is the busiest U.S. corporate earnings week of the quarter. So far most of the earnings reports have been upbeat.

In overnight news, the Japanese yen hit a 20-year low against the U.S. dollar as the Bank of Japan has reinforced its commitment to low interest rates despite rising inflation. Japan is bucking the trend of other major countries who have or are considering tightening their monetary policies. Meantime, the Euro currency fell to a five-year low against the dollar as soaring energy prices crimp the Euro zone economy. The U.S. dollar index is solidly up again today and hit another two-year high.

The other key outside markets today sees Nymex crude oil futures prices slightly up and trading around $102.50 a barrel. The yield on the 10-year U.S. Treasury note is presently fetching 2.804%.

U.S. economic data due for release Thursday includes the weekly jobless claims report, the advance first-quarter GDP estimate and the Kansas City Fed manufacturing survey.

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