(Kitco News) - Comex gold futures prices are solidly lower and have hit a fresh nine-week low in early trading Thursday. Fresh near-term chart damage has been inflicted and the bears are in near-term technical control. Some fresh, weak economic data from China and the European Union have the market place in a “risk off” mode early Thursday. The key “outside markets” are also bearish for the precious metals Thursday morning, as the U.S. dollar index is firmer and crude oil prices are lower. April gold last traded down $16.20 at $1,634.10 an ounce. Spot gold was last quoted down $16.00 an ounce at $1,634.50. May Comex silver last traded down $.402 at $31.825 an ounce.
Traders are taking a more risk-averse posture Thursday in the wake of fresh, weak manufacturing news coming out of China, which was followed by a weak economic report coming from the European Union Thursday. There has been a string of weaker data coming out of commodity-consuming juggernaut China, and that has the commodity market bulls a bit worried. And the weak economic data from the EU raises fears that bloc could slip into recession. Thus, the world stock and commodity markets, including gold and silver, are feeling selling pressure Thursday.
The U.S. dollar index is firmer in early trading Thursday. That’s also a negative for the precious metals. Meantime, crude oil prices are trading lower, which is also bearish for today’s price action in gold and silver. These two major markets will continue to have at least some daily influence over the precious metals markets.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the housing price index and leading economic indicators.
The London A.M. gold fixing was $1,636.00 versus the previous P.M. fixing of $1,649.25.
Technically, gold futures bears have downside near-term technical momentum and gained more Thursday as prices fell to a fresh nine-week low and are also in a three-week-old downtrend on the daily bar chart. The bulls’ next near-term upside price breakout objective is to produce a close above technical resistance at this week’s high of $1,670.10. Bears' next near-term downside price objective is closing prices below psychological support at $1,600.00. First resistance is seen at $1,640.00 and then at $1,650.00. First support is seen at the overnight low of $1,631.60 and then at $1,625.00.
May silver futures prices are also in a three-week-old downtrend on the daily bar chart and prices are poised to take out solid chart support at last week’s low of $31.625, which would also produce fresh chart damage. Silver bears have downside technical momentum. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at this week’s high of $33.09 an ounce. The next downside price breakout objective for the bears is closing prices below major psychological support at $30.00. First resistance is seen at $32.00 and then at the overnight high of $32.35. Next support is seen at last week’s low of $31.625 and then at $31.00.
Source; http://www.kitco.com/reports/KitcoNews20120322JW_am.html
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