Bulls Working To Stabilize Gold & Silver Markets

New York (April 2)  Gold and silver prices  are near steady in early-afternoon U.S. trading Tuesday. Gold prices hit a three-week low overnight, while silver fell to a three-month low. A higher U.S. dollar index that is closing in on its for-the-move high scored in March continues to limit buying interest in the precious metals markets. June gold futures were last up $0.70 an ounce at $1,294.90. May Comex silver was last down $0.054 at $15.05 an ounce.

Asian and European stock indexes were mixed to slightly up in quieter trading overnight, following Monday’s good gains. U.S. stock indexes are mixed at midday. The U.S. indexes are at or near their recent multi-month highs and are enjoying solid price uptrends on the charts. That’s also bearish for the competing asset class, safe-haven metals.

Australia’s central bank, the Royal Bank of Australia, on Tuesday left its monetary policy unchanged at the bank’s regular meeting. The RBA did warn that the Aussie economy is not meeting its inflation target and doing so may take a while. This continues a theme of very low, and possibly even problematic, inflation in the major economies of the world. Low inflation is the enemy of raw commodity market bulls.

The other key outside market today sees Nymex crude oil prices higher, and hitting another 4.5-month high overnight and are trading above $62.00 a barrel.

Technically, June gold futures prices closed near mid-range today. The bulls still have the overall near-term technical advantage but have faded badly recently and need to show fresh power soon to avoid more serious chart damage being inflicted. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the March high of $1,330.80. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the March low of $1,287.50. First resistance is seen at $1,300.00 and then at $1,305.00.

KitcoNews