Gold and silver prices are solidly lower in early U.S. trading Tuesday. Higher world government bond yields and a resurgent U.S. dollar to start the U.S. trading week are working against the precious metals market bulls.

Global stock markets were mostly lower overnight. U.S. stock indexes are pointed toward lower openings when the New York day session begins. U.S. and China markets were closed Monday for holidays. Rising world government bond yields are also prompting selling pressure in equities early this week. Tuesday is setting up to be another volatile day in the U.S. stock market. High volatility in the stock market today could limit selling pressure in the safe-haven gold market.

There is no major U.S. economic data due for release Tuesday. Traders and investors are awaiting Wednesday afternoon’s minutes from the latest Federal Reserve Open Market Committee (FOMC) meeting.

Technically, April gold futures bulls still have the overall near-term technical advantage. Bulls’ next upside technical objective is pushing and closing prices above chart resistance at the January high of $1,370.50. Bears' next near-term downside price breakout objective is closing prices below solid technical support at $1,320.00. First support is seen at the overnight low of $1,338.80 and then at $1,335.00. First resistance is seen at $1,350.00 and then at today’s high of $1,344.00.

March silver bears have the slight overall near-term technical advantage. The next upside price breakout objective is closing futures prices above solid technical resistance at $17.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the February low of $16.13. First resistance is seen at today’s high of $16.69 and then at last week’s high of $16.95. Next support is seen at the overnight low of $16.42 and then at $16.25

 

Sources: Kitco.com