Gold, Silver Slightly Lower; Lack Of Bullish News
(Kitco News) - Gold and silver prices are modestly lower in early U.S. trading Friday. It’s been a slow news week, which has helped gold to drift in a choppy fashion. However, it’s been a very good week for the silver market bulls, as prices hit a 2.5-month high Thursday and the market is now in an uptrend. June Comex gold futures were last down $4.00 an ounce at $1,344.80. May Comex silver was last down $0.064 at $17.175 an ounce.
World stock markets were mixed overnight. U.S. stock indexes are pointed toward slightly lower openings when the New York day session begins. It’s been a quieter week on the news and geopolitical front. That has allowed the world stock markets to focus on their own corporate earnings reports.
A feature in the marketplace this week has been rising world government bond yields, which suggests inflation is creeping up and that world economies are experiencing healthy economic growth. This is a bullish underlying development for the precious metals markets (hard assets).
The G-20 finance ministers meeting in Washington, D.C. begins Friday and last through the weekend.
The key “outside markets” on Friday morning see the U.S. dollar index trading firmer. Nymex crude oil prices are weaker. Prices Thursday hit a 3.5-year high, and are currently trading below $68.00 a barrel. Brent crude oil pushed above $74.00 on Thursday. Oil traders are awaiting the conclusion of an OPEC meeting that is taking place today in Saudi Arabia. Oil ministers from OPEC and Russia are expected to continue to implement their production-cut quotas.
There is no major U.S. economic data due for release Friday.
Technically, June gold bulls have the firm overall near-term technical advantage. 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 $1,350.00 and then at this week’s high of $1,359.00. First support is seen at this week’s low of $1,340.20 and then at $1,335.00. Wyckoff's Market Rating: 6.5
May silver futures bulls have the overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the January high of $17.785 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.50. First resistance is seen at this week’s high of $17.36 and then at $17.50. Next support is seen at $17.00 and then at $16.89. Wyckoff's Market Rating: 6.5.