Gold sees the pressure follow; Bulls must now step up

(Kitco News) – Gold prices are slightly lower at the start of the US trading session on Friday, with subsequent sell-off interests taking advantage of strong losses on Thursday. The bullish price trend on the daily bar chart remains in place for gold and silver, but bulls from both markets are now expected to intensify and show power soon to avoid short-term technical damage. term. April gold futures were down $ 3.20 an ounce at $ 1,324.60. In March, Comex 's money was down from $ 0.006 to $ 15.795 an ounce.

The Asian and European stock markets have for the most part grown overnight, with Chinese equities ahead of Asia. US equity indices point to larger openings at the beginning of New York's daily session. The optimistic attitude of traders and investors was reinforced this week by perceptions that the United States and China are getting closer to an agreement to end their trade war. President Trump met with a senior Chinese trade official this afternoon after this week's meeting in Washington, DC. The increased appetite for risk in the market at the end of this week is a bearish element for the money and safe haven markets.

The Canadian press "The Globe and Mail" announced that Barrick Gold was considering taking control of rival Newmont Mining Corp. in a hostile way. Once completed, it would be one of the largest mergers of mining companies ever made.

In addition, the euro area producer price index for the month of January was down 0.1% for the month and up 1.4% year-on-year. These figures were very close to market expectations and continued under the sign of non-problematic global inflationary pressures.

The German business confidence index Ifo, closely watched, fell to its lowest level in four years in February. "The German economy remains weak," said an Ifo official. This is not good news for the already anemic economy of the European Union, whose main battleground is Germany.

The main external markets are now seeing the almost stable US dollar index. Nymex crude oil prices are firmer and are trading around $ 57.50 per barrel.

No major US economic report is expected Friday. However, a forum on US monetary policy was organized, with representatives of the Fed and a report on monetary policy.

Technically, the April bulls still have a general technical advantage in the short term, but have faded and must soon post new power to maintain a three-month bullish trend on the daily bar chart. Bulls next bullish target is to produce a futures contract in April, above a strong resistance, at $ 1,350.00. Bears' next short-term price reduction target pushes prices under strong technical support to a low of $ 1,304.70 in February. The first resistance is seen at $ 1,330.00, then at $ 1,340.00. The first support is seen at the bottom of the week, $ 1,323.30, then $ 1,320.00. Wyckoff's Market Rating: 6.5

March silver futures still have a short-term technical advantage. A three-month uptrend is in place on the daily bar chart. However, increased short-term selling pressure would produce a double bearish reversal pattern on the daily bar chart. The next bullish price reduction target of the Silver Bulls is to close the closing prices above a strong technical resistance at the January high of $ 16.20 an ounce. The next downside price target for the bears is that closing prices are below solid support at the February low of $ 15,445. The first resistance is seen at $ 16.00 and then at $ 16.20. The next support is seen at Thursday's low of $ 15,815, then at this week's low of $ 15,715. Wyckoff Market Estimate: 6.0.