Gold Price Down On Profit-Taking, Rebound In US Dollar, Better Risk Appetite

London (Mar 27)  Gold prices are lower in early U.S. trading Tuesday, on profit taking from recent good gains that saw prices hit a five-week high overnight. A solid rebound in the U.S. dollar index today is working against the precious metals markets. Also, trader and investor risk appetite has up-ticked significantly early this week, which is a bearish element for the safe-haven gold and silver. April Comex gold futures were last down $13.80 an ounce at $1,341.10. May Comex silver was last down $0.099 at $16.585 an ounce.

World stock markets were mostly higher overnight. U.S. stock indexes are again pointed toward higher openings when the New York day session begins. Risk appetite is back in the marketplace this week amid early signs the U.S. and China will work out their trade disagreements. That’s bullish for world stock markets but bearish for safe-haven assets.

In overnight news, China’s central bank pushed the value of its currency, the yuan, to a 2.5-year high against the U.S. dollar Tuesday. The move by China’s central bank could be an effort to assuage U.S. trade concerns. A stronger yuan makes importing China’s products more expensive.

The key “outside markets” on Tuesday morning see the U.S. dollar index higher on a corrective bounce after hitting a five-week low overnight. Meantime, Nymex crude oil prices are higher and trading just below $66.00 a barrel.

U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and Goldman Sachs retail sales reports, the S&P/Case-Shiller home price index, the consumer confidence index, and the Richmond Fed business survey.

Live 24 hours gold chart [Kitco Inc.]

Technically, April gold bulls still 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 $1,370.50. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,300.00

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