Mild price pressure on gold as U.S. Treasury yields up-tick

(Kitco News) – Gold prices are a bit weaker and silver a bit firmer in subdued early U.S. trading Tuesday. A modest rise in U.S. Treasury yields today is keeping the precious metals market bulls timid. April gold was last down $2.50 at $1,981.30 and May silver is up $0.044 at $24.055.

Global stock markets were mixed to higher overnight. U.S. stock indexes are pointed toward firmer openings when the New York day session begins. U.S. stock index bulls are enjoying near-term price uptrends on the daily bar charts.

In overnight news, Australia’s central bank kept its monetary policy steady after its regular meeting. The bank said the pause from tightening gives it time to assess the outlook amid uncertainty, but added further tightening of monetary policy may be needed.

Meantime, the Eurozone February producer price index was reported up 13.6%, year-on-year, which was slightly below market expectations.

The key outside markets today see the U.S. dollar index lower. Nymex crude oil prices are firmer and trading around $81.00 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching 3.449%.

U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and chain store retail indexes, manufacturers’ shipments and inventories and the IBD/TIPP economic optimism index.

Technically, the gold futures bulls have the firm overall near-term technical advantage. Prices are in an uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in April futures above solid resistance at the March high of $2,014.90. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at this week’s high of $1,991.70 and then at $2,000.00. First support is seen at $1,965.00 and then at this week’s low of $1,950.00. Wyckoff’s Market Rating: 7.5

The silver bulls have the solid overall near-term technical advantage as prices hit a two-month high Monday. Prices are in a steep uptrend on the daily bar chart. Silver bulls’ next upside price objective is closing May futures prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at $22.50. First resistance is seen at this week’s high of $24.335 and then at $24.50. Next support is seen at this week’s low of $23.725 and then at $23.50. Wyckoff’s Market Rating: 7.5.