Gold, Silver Prices Posting Rebounds As USDX Sells Off

(Kitco News) - Gold and silver prices are moderately up in early U.S. trading Friday, on corrective bounces after selling off sharply on Thursday. A sell off in the U.S. dollar index today is also benefiting the precious metals markets. June gold futures were last up $3.60 an ounce at $1,297.00. May Comex silver was last up $0.153 at $15.02 an ounce.

Asian and European stock indexes were mixed to weaker overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. Investor/trader risk appetite remains keener late this week, bolstered by news of a mega merger between oil companies Chevron and Anadarko.

The U.S. corporate earnings season gets underway today, with big-bank results released, including JP Morgan and Wells Fargo. Several bank industry analysts were expecting somewhat downbeat earnings reports for the first quarter of this year. However, the just-released JP Morgan and Wells Fargo results beat market expectations.

In overnight news, China reported its import and export activity for March. Exports were up 14.2%, year-on-year, while imports were down 7.6% in the same period. These latest figures are deemed upbeat for China’s economy, given that in February its exports declined 20.7% from a year ago. Forecasters had expected a rise in China’s exports of around 9% in March.

The key outside markets today find the U.S. dollar index lower. Meantime, Nymex crude oil prices are higher and trading around $64.50 a barrel.

U.S. economic reports due for release include import and export prices, and the University of Michigan consumer sentiment survey. Also, the IMF and World Bank spring meetings get under way.

Technically, the gold bulls still have the overall near-term technical advantage. However, a downtrend line is still in place on the daily bar chart and turned back the early-week rally in prices. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at the March high of $1,330.80. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at last week’s low of $1,284.90. First resistance is seen at $1,300.00 and then at $1,305.00. First support is seen at this week’s low of $1,292.90 and then at $1,284.90. Wyckoff's Market Rating: 6.0.

May silver futures bears have the overall near-term technical advantage. Prices are in a seven-week-old downtrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at this week’s high of $15.31 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.50. First resistance is seen at Thursday’s high of $15.215 and then at this week’s high of $15.31. Next support is seen at this week’s low of $14.845 and then at $14.75. Wyckoff's Market Rating: 4.0.