Gold prices pause late this week, after hitting 7.5-year high
(Kitco News) - Gold prices are near steady in early U.S. trading Friday, on a pause and some chart consolidation after pushing to a 7.5-year high of $1,796.10 Wednesday. Still, risk appetite among traders and investors has pulled back late this week and that’s bullish for the safe-haven metals. August gold futures were last down $0.70 an ounce at $1,770.00. July Comex silver prices were last up $0.03 at $17.925 an ounce.
The important U.S. economic data release of the day Friday is personal income and outlays for May. Income came in at down 4.2% and was seen down 7.0%, and outlays (spending) was up 8.2% and was seen up 8.7% in the month, compared to April. Markets showed no significant reaction to the data. The other data point in the U.S. today is the University of Michigan consumer sentiment survey.
Global stock markets were mixed in overnight trading. U.S. stock indexes are pointed toward steady to mixed openings when the New York day session begins. Equities investors on Friday are being buffeted by the competing forces of easy central bank money that has been flowing into stock markets, countered by rising concerns this week about a “second wave” of Covid-19 infections again squelching major economies. The Texas governor has stopped the reopening of businesses in his state as the Covid infection rate spikes and hospitals are filling up. Other U.S. states are also seeing alarming rises in infections.
The important outside markets today see Nymex crude oil prices weaker and trading around $38.50 a barrel. The U.S. dollar index is slightly down early today. The yield on the benchmark U.S. Treasury 10-year note is currently around the 0.68% level.
Technically, the gold bulls have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in August futures above solid resistance at $1,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,750.00. First resistance is seen at the overnight high of $1,778.90 and then at this week’s high of $1,796.10. First support is seen at Thursday’s low of $1,764.10 and then at this week’s low of $1,753.50. Wyckoff's Market Rating: 8.0
July silver futures bulls have the overall near-term technical advantage but have faded a bit late this week. Silver bulls' next upside price objective is closing prices above solid technical resistance at the February high of $19.075 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 $18.00 and then at this week’s high of $18.255. Next support is seen at this week’s low of $17.425 and then at $17.25. Wyckoff's Market Rating: 6.5.