Gold Weaker As World Marketplace in Upbeat Mood
(Kitco News) - Gold prices are slightly lower in early U.S. trading Friday. The yellow metal is seeing selling pressure late this week from a marked uptick in trader and investor risk appetite, as evidenced by the late-week rally in world stock markets. June Comex gold futures were last down $2.00 an ounce at $1,339.90. May Comex silver was last up $0.022 at $16.495 an ounce.
However, don’t be surprised if safe-haven gold finishes the day above unchanged, heading into a still-uncertain weekend. U.S., Syria and Russia tensions are still high, with the threat of a U.S. military strike on Syria still very real.
World stock markets were mostly firmer overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. This week has seen a marked improvement in trader and investor risk appetite, despite the rising animosity between the U.S., Russia and Syria. The perceived improving prospects for a negotiated trade agreement between the U.S. and China—the world’s two largest economies—have put the marketplace more at ease.
U.S. economic data due for release Friday is light and includes the University of Michigan consumer sentiment survey.
Technically, June gold bulls still have the overall near-term technical advantage, but have faded late this week. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the January high of $1,375.50. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the March low of $1,309.30. First resistance is seen at today’s high of $1,344.70 and then at $1,350.00. First support is seen at today’s low of $1,335.50 and then at this week’s low of $1,330.10. Wyckoff's Market Rating: 6.0
May silver futures bears have the slight overall near-term technical advantage amid recent choppy trading. Silver bulls' next upside price breakout objective is closing 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 $16.00. First resistance is seen at Thursday’s high of $16.69 and then at Wednesday’s high of $16.89. Next support is seen at this week’s low of $16.295 and then at last week’s low of $16.15. Wyckoff's Market Rating: 4.5.