Gold Pauses After A Good Week
(Kitco News) - Gold and silver prices are trading near steady in early U.S. trading Friday, as some chart consolidation is featured after the bulls have had a good week. Don’t be surprised to see some upside price action by the end of the day, heading into a three-day U.S. holiday weekend—and with geopolitics back on the front burner. June Comex gold futures were last down $0.50 an ounce at $1,303.90. July Comex silver was last down $0.027 at $16.66 an ounce.
World stock markets were mixed overnight, with Asian shares weaker and European stock indexes firmer. U.S. stock indexes are pointed toward modestly higher openings when the New York day session begins.
Geopolitical risk is back on the front burner of the marketplace late this week. Italian government bond yields are rising and hit a four-year high this week amid an anti-establishment government that is forming in Italy, and which could destabilize the European Union. The U.S.-North Korea nuclear summit has been called off, and the U.S. is threatening to slap more trade tariffs on its trading partners.
The key “outside markets” today find Nymex crude oil prices lower on more profit taking after hitting a 3.5-year high on Tuesday. A bearish weekly low close today would be a technical clue the market has put in a near-term top.
Meantime, the U.S. dollar index is higher and near this week’s six-month high.
U.S. economic data due for release Friday includes durable goods orders and the University of Michigan consumer sentiment survey.
Technically, June gold bears still have the overall near-term technical advantage. Prices are still in a six-week-old downtrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above the May high of $1,326.30. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at this week’s low of $1,281.20. First resistance is seen at today’s high of $1,306.60 and then at $1,309.00. First support is seen at $1,300.00 and then at Thursday’s low of $1,292.20. Wyckoff's Market Rating: 4.5
July silver futures 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 the May low of $16.07. First resistance is seen at today’s high of $16.735 and then at the May high of $16.865. Next support is seen at $16.50 and then at this week’s low of $16.28. Wyckoff's Market Rating: 5.0.