Price pause for gold as fresh fundamental inputs awaited

(Kitco News) – Gold and silver prices are near steady in early U.S. trading Thursday. Both metals are pausing and seeing some normal chart consolidation after hitting 12-month highs on Wednesday. Traders are also awaiting new fundamental developments to impact the markets. April gold was last down $0.70 at $2,020.10 and May silver is up $0.033 at $25.07.

Global stock markets were mixed overnight. U.S. stock indexes are pointed toward mixed openings when the New York day session begins. Risk appetite this week has down-ticked. Reads a Wall Street Journal headline today: “Bank failures; high inflation; rising rates. Is the resilient jobs market about to crack?”

In overnight news, reports said that as the price of gold is back above $2,000 an ounce the countries of Brazil, Russia, India, China and South Africa all plan to increase their gold reserves. This is due to “an increasingly bipolar geopolitical world—exacerbated by the war in Ukraine, says an ING analyst. He added such is a “structural positive for gold and structural negative for the U.S. dollar.”

The U.S. data point of the week is Friday’s U.S. employment situation report for March from the Labor Department. The key non-farm payrolls number is seen coming in at up 238,000, compared to a rise of 311,000 in the February report. The U.S. markets will have to wait until Monday to react to the data, as they are closed on Friday for the Easter holiday.

The key outside markets today see the U.S. dollar index slightly up after hitting a two-month low Tuesday. Nymex crude oil prices are near steady and trading around $80.50 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching 3.292% and has fallen this week.

U.S. economic data due for release Thursday includes the weekly jobless claims report, the Challenger job-cuts report, the global services PMI and monthly retail chain store sales.

Technically, the gold futures bulls have the strong overall near-term technical advantage. Prices are in an uptrend on the daily bar chart Wednesday hit a 12-month high. Bulls’ next upside price objective is to produce a close in April futures above solid resistance at the record high of $2,078.80. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at this week’s low of $1,950.00. First resistance is seen at this week’s high of $2,033.80 and then at $2,050.00. First support is seen at $2,000.00 and then at $1,979.00. Wyckoff’s Market Rating: 8.5

The silver bulls have the solid overall near-term technical advantage as prices hit a 12-month high Wednesday. 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 $27.00. The next downside price objective for the bears is closing prices below solid support at $23.00. First resistance is seen at this week’s high of $25.295 and then at $25.50. Next support is seen at Wednesday’s low of $24.785 and then at $24.50. Wyckoff’s Market Rating: 8.0.