Gold Up A Bit As U.S. Dollar Backs Down
(Kitco News) - Gold and silver prices are slightly higher in early U.S. trading Friday. Gold prices did poke to a nearly 12-month low overnight, before rebounding a bit. The precious metals are getting a bit of a lift as the U.S. dollar index is trading solidly lower today on a corrective pullback after hitting a 12-month high on Thursday. August gold futures were last up $1.70 an ounce at $1,252.80. July Comex silver was last up $0.074 at $16.025 an ounce.
World stock markets were mostly higher overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. Little risk aversion in the marketplace the past few weeks has been a bearish force working against the safe-haven metals.
Reports this morning said U.S. President Donald Trump wants to pull the U.S. out of the World Trade Organization, which he says is an anti-U.S. group. However, such a move would take the approval of the U.S. Congress.
In other overnight news, the Euro zone annual inflation rate was reported at 2.0% in June versus 1.9% in May, year-on-year.
Today is the last trading day of the week, of the month and of the quarter, which makes it a more technically significant trading day for markets.
The key “outside markets” today find the U.S. dollar index lower on a corrective pullback after hitting a 12-month high on Thursday. Meantime, Nymex crude oil prices are slightly higher and trading just below $74.00 a barrel. Oil prices Thursday hit a 3.5-year high.
U.S. economic data due for release Friday includes personal income and outlays, the ISM Chicago business survey, and the University of Michigan consumer sentiment survey.
Technically, gold bears have the firm overall near-term technical advantage amid the price downtrend on the daily bar chart. But the market is technically oversold now. Gold bulls' next upside near-term price breakout objective is to produce a close in August futures above solid resistance at $1,286.80. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,230.00. First resistance is seen at Wednesday’s high of $1,261.90 and then at $1,269.40. First support is seen at today’s low of $1,246.90 and then at $1,240.00. Wyckoff's Market Rating: 2.5
July silver futures bears have the firm overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $16.75 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the December low of $15.805. First resistance is seen at Wednesday’s high of $16.295 and then at this week’s high of $16.485. Next support is seen at this week’s low of $15.88 and then at $15.805. Wyckoff's Market Rating: 2.5.