Gold Firmer As U.S. Dollar Fades Late This Week
(Kitco News) - Gold and silver prices are modestly higher in early U.S. trading Friday. The precious metals markets are benefiting from a downside correction in the U.S. dollar index late this week, after the index had scored a 4.5-month high a few days ago. Some short covering in the futures markets and bargain hunting in the cash markets are featured in gold and silver late this week, as there are now clues that near-term market bottoms are in place. June Comex gold futures were last up $2.50 an ounce at $1,324.90. July Comex silver was last up $0.051 at $16.81 an ounce.
World stock markets were mixed in a quieter marketplace overnight, with European stocks mostly firmer and Asian stocks mostly weaker. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins.
The “outside markets” today find Nymex crude oil prices slightly higher and trading above $71.00 a barrel. The U.S. dollar index is slightly lower on profit taking after hitting a 4.5-month high on Wednesday.
U.S. economic data due for release Friday includes import and export prices, and the University of Michigan consumer sentiment survey.
Technically, June gold bulls and bears are on a level overall near-term technical playing field. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,350.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,300.00. First resistance is seen at $1,330.00 and then at $1,337.00. First support is seen at the overnight low of $1,318.70 and then at $1,310.00. Wyckoff's Market Rating: 5.0
July silver futures prices hit a three-week high overnight, and the bulls and bears are back on a level overall near-term technical playing field. 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 $16.89 and then at $17.00. Next support is seen at the overnight low of $16.705 and then at $16.50. Wyckoff's Market Rating: 5.0.