Gold prices are modestly lower in early U.S. trading Monday, on a downside technical correction following good gains posted Friday. The gold bears still have the overall near-term technical advantage, but the bulls did gain a bit of momentum on Friday, to begin to suggest a near-term market low is in place. But the bulls have more work to do in the near term to better suggest such. June gold was last down $4.40 at $1,299.20 an ounce. Spot gold was last quoted down $3.40 at $1,299.40. May Comex silver last traded down $0.106 at $19.84 an ounce.

Asian and European stock markets were pressured Monday following Friday’s losses in the U.S. stock market that were led by the Nasdaq index dropping sharply. Friday’s U.S. jobs data was just a bit weaker than expected, but still put downside pressure on U.S. equities. The U.S. stock indexes were under pressure again in overnight trading. If the air continues to come out of the U.S. stock market balloon, look for the precious metals and other commodity markets to see underlying buying support.

U.S. economic data due for release Monday is light and includes the employment trends index and consumer installment credit. However, two Federal Reserve officials are also scheduled to speak Monday: St. Louis Fed president James Bullard and Chicago Fed president Charles Evans. Their remarks will be closely scrutinized by traders and investors for clues on the future direction of U.S. monetary policy.

Wyckoff’s Daily Risk Rating: 5.0 (The world geopolitical front remains quieter with no major issues on the front burner of the market place.)

(Wyckoff’s Daily Risk Rating is your way to quickly gauge investor risk appetite in the world market place each day. Each day I assess the “risk-on” or “risk-off” trader mentality in the market place with a numerical reading of 1 to 10, with 1 being least risk-averse (most risk-on) and 10 being the most risk-averse (risk-off), and 5 being neutral.

The London A.M. gold fix is $1,299.00 versus the P.M. fixing of $1,297.25.

Technically, June Comex gold bears still have the overall near-term technical advantage. However, Friday’s close above $1,300 and the bullish weekly high close Friday is an early clue this market has put in a near-term low. Bulls’ next upside near-term price breakout objective is to produce a close above technical resistance at $1,320.00. Bears' next near-term downside breakout price objective is closing prices below technical support at $1,268.00. First resistance is seen at Friday high of $1,307.50 and then at $1,312.00. First support is seen at $1,290.00 and then at Friday’s low of $1,284.40.  

May silver futures bears have the near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $20.63 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at $19.00. First resistance is seen at $20.00 and then at last week’s high of $20.23. Next support is seen at the overnight low of $19.78 and then at the March low of $19.575.

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