Gold sees corrective price move to start trading week
New York (Mar 1) Gold futures prices are moderately up in early U.S. trading Monday, on a corrective rebound after last Friday hitting an eight-month low. However, buying interest in the yellow metal will likely be squelched today by rallying U.S. stock indexes and a firmer U.S. dollar index. Also, the chart for gold remains firmly near-term bearish following last Friday’s technically negative weekly and monthly low closes. April gold futures were last up $7.20 at $1,736.40 and May Comex silver was last up $0.435 at $26.875 an ounce.
Global stock markets were higher overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. Global bond market yields have down-ticked a bit to start the trading week, which has given some buoyancy to the stock markets that got hit last week when the U.S. 10-year Treasury yield moved above 1.6% to a one-year high. The U.S. 10-year on Monday is currently fetching 1.445%.
President Biden's $1.9 trillion U.S. stimulus bill was passed by the House of Representatives on Saturday and now moves to the Senate. With some unemployment support measures running out in two weeks, the focus for lawmakers is on getting the bill passed through the Senate and ready for Biden's signature as quickly as possible.
In overnight news, the Euro zone February manufacturing purchasing managers index (PMI) came in at 57.9 versus 54.8 in January. Meantime, China’s private survey Caixin PMI came in at 50.9 in February from 51.5 in January. A reading above 50.0 suggests growth in the sector. U.S. PMI numbers are out this morning.
The key “outside markets” today see Nymex crude oil futures prices higher and trading around $62.25 a barrel. There is an OPEC meeting on Thursday that the marketplace will closely monitor. The U.S. dollar index is a bit higher early today.
U.S. economic data due for release Monday includes the U.S. manufacturing purchasing managers index, the ISM business report on manufacturing, construction spending and the global manufacturing purchasing managers index.
Technically, the April gold futures bears have the solid overall near-term technical advantage amid a seven-week-old price downtrend in place on the daily chart. 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 the overnight high of $1,757.40. First support is seen at the overnight low of $1,731.60 and then at $1,725.00.
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