Price losses for gold, silver as USDX rallies, crude sinks

New York (Mar 25)  Gold and silver prices are down in early U.S. trading Thursday, with silver hitting a two-month low. A stronger U.S. dollar and a breakdown in the crude oil market this week have squelched the precious metals market bulls. April gold futures were last down $7.20 at $1,726.10 and May Comex silver was last down $0.616 at $24.625 an ounce.

Global stock markets were mixed overnight, with European shares mostly weaker and Asian shares mostly firmer. U.S. stock indexes are pointed toward firmer openings when the New York day session begins. A feature in the market place this week has been an appreciating U.S. dollar on the foreign exchange market and a big drop in crude oil prices. These key "outside markets" today see the U.S. dollar index higher and hitting another four-month high overnight as the greenback bulls have restarted a price uptrend on the daily bar chart. The U.S. Treasury 10-year note yield is fetching 1.623% Wednesday morning. Rising bond yields in the U.S. that are outpacing government bond yields in other countries are inviting capital flows into the greenback, including from the Euro currency. The U.S. is beating the Euro zone on economic growth prospects and on the Covid-19 battle. Meantime, Nymex crude oil prices are lower today and trading around $60.00 a barrel. A giant container ship stuck in the Suez Canal is disrupting world shipping, including that of crude oil. One has to wonder if crude oil prices would be even lower this week had not the canal blockage occurred.

U.S. weekly jobless claims out today see analysts expecting 730,000 new filings and a drop in continuing claims, to 4 million.

One other thing the market will be keeping a close eye on Thursday is the auction of $62 billion in seven-year U.S. Treasury notes at midday. This auction comes after February's Treasury note auction flop that prompted a big sell-off in U.S. Treasuries.

Other U.S. economic data due for release Thursday includes the third estimate of four-quarter 2020 GDP, and the Kansas City Fed manufacturing survey. Several Federal Reserve officials are also slated to give speeches today.

Technically, the April gold futures bears have the overall near-term technical advantage. Bulls' next upside price objective is to produce a close in April futures above solid resistance at $1,775.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the March low of $1,673.30. First resistance is seen at the overnight high of $1,738.40 and then at this week's high of $1,747.00. First support is seen at this week's low of $1,722.30 and then at last week's low of $1,716.60.

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