Price pauses in gold, silver, as equity markets do the same

New York (Apr 12)  Gold and silver prices are are not trading far from unchanged levels in early U.S. trading Monday, as the metals are pausing along with most global equity markets, as they await new fundamental inputs this week. June gold futures were last down $1.60 at $1,743.30 and May Comex silver was last down $0.05 at $25.275 an ounce.

Global stock markets were mostly lower overnight. U.S. stock indexes are pointed toward weaker openings when the New York day session begins, on a routine corrective pullback from recent gains that put the indexes at record highs last week.

Markets are not paying much attention to Federal Reserve Chairman Jerome Powell's comments on the “60 Minutes” TV show Sunday evening, in which has reiterated the U.S. central bank will continue to support the economy until its fully recovered from the pandemic. He said it will “be a while” before the Fed raises interest rates.

Middle East tensions have up-ticked early this week on reports that a major uranium-enrichment facility in Iran was hit by a damaging cyberattack, likely coming from Israel. Major damage was reported.

In another sign of rising and possibly problematic price inflation from the world's major economies, reports say China is considering implementing price controls due to rising commodity prices. Reports also say China's central bank wants to tighten lending standards.

The key outside markets today see the U.S. dollar index slightly down. Nymex crude oil prices are firmer and trading around $60.00 a barrel. Meantime, the yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.65%.

There is no major U.S. economic data due for release Monday but the pace picks up Tuesday, including the consumer price index report for March.

Technically, the June gold futures bears have the overall near-term technical advantage. However, a price downtrend on the daily chart has stalled out and more price gains in the near term would confirm a bullish double-bottom reversal pattern that would be another chart clue that a market bottom is in place. Bulls' next upside price objective is to produce a close in April futures above solid resistance at $1,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00. First resistance is seen at $1,750.00 and then at last week's high of $1,759.40. First support is seen at $1,730.00 and then at last week's low of $1,721.60.

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