Gold, silver prices up; bulls show resilience
(Kitco News) - Gold and silver prices are solidly higher in early U.S. trading Friday, despite global equity markets that were mostly up overnight and U.S. stock indexes set to open with good gains. Gold and silver bulls are hanging tough amid upbeat trader/investor risk appetites, but they need a spark to push prices above their recent trading ranges. August gold futures were last up $11.80 an ounce at $1,742.90. July Comex silver prices were last up $0.302 at $17.81 an ounce.
Recent, surprisingly upbeat economic data from the U.S. and other countries continue to stoke trader and investor confidence and risk appetite. And there are perceptions that central banks are at the ready with even more monetary stimulus should the need arise.
Friday is quadruple-witching day in the U.S. stock market, whereby stocks, stock options, options on futures and stock index futures contracts expire. History shows these days can produce higher volatility in the stock market.
Lingering in the background of the marketplace at present is the inflammatory rhetoric coming out of North Korea, including that rogue nation blowing up a building near its border with South Korea. Don’t be surprised if this becomes a front-burner marketplace matter in the coming weeks or few months.
Nymex crude oil prices pushed above $40 Friday morning, providing another clue that this important outside market has recovered from its April meltdown and that world economies will recover faster than expected. The other key outside markets early today see the U.S. dollar index near steady. The yield on the benchmark U.S. Treasury 10-year note is currently around the 0.73% level.
U.S. economic data due for release Friday is light and includes international transactions and the current account. Several Federal Reserve officials are slated to give speeches today.
Technically, the gold bulls have the firm overall near-term technical advantage amid choppy and sideways trading at higher levels. Bulls’ next upside price objective is to produce a close in August futures above solid resistance at $1,761.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00. First resistance is seen at $1,750.00 and then at $1,754.90. First support is seen at the overnight low of $1,728.30 and then at $1,717.30. Wyckoff's Market Rating: 7.5
July silver futures bulls have the overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at last week’s high of $18.405 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.00. First resistance is seen at this week’s high of $17.92 and then at $18.00. Next support is seen at the overnight low of $17.47 and then at $17.25. Wyckoff's Market Rating: 6.5.