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Gold prices up, bulls remain powerful

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(Kitco News) Gold prices are modestly higher in early U.S. trading Friday amid a steady flow of safe-haven and chart-based buying. Silver is near steady this morning but the bulls in that market have had a good week, with prices closing in on $20.00. August gold futures were last up $6.20 an ounce at $1,806.60. September Comex silver prices were last down $0.013 at $19.56 an ounce. 

Global stock markets were mixed in overnight trading. The U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins. Traders and investors this week were trying to weigh conflicting forces: the bearish aspects of rising Covid-19 cases that may force more businesses to close again, as well as escalating U.S.-China tensions, and the bullish specter of major global economies that are recovering from pandemic shutdowns faster than most had reckoned. Notions that a vaccine for Covid-19 is coming much sooner that experts had initially predicted are also a bullish element for global stock markets.

Major U.S. banks this week said they have set aside billions of dollars of reserves, which suggests those banks think U.S. economic conditions will deteriorate again. Netflix on Thursday warned that its subscription growth rate could slow the rest of this year.

Meantime, European leaders met Friday to discuss a $2 trillion spending plan to boost the Euro zone economy hit by the pandemic.

The important outside markets today see Nymex crude oil prices weaker and trading around $40.40 a barrel. The U.S. dollar index is lower in early trading. The yield on the benchmark U.S. Treasury 10-year note is currently around the 0.62% level. 

U.S. economic data due for release Friday includes new residential construction and the University of Michigan consumer sentiment survey.

Technically, the gold bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in August futures above solid resistance at $1,850.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at last week’s low of $1,779.20. First resistance is seen at this week’s high of $1,819.50 and then at $1,825.50. First support is seen at $1,800.00 and then at this week’s low of $1,791.10. Wyckoff's Market Rating: 8.5

Live 24 hours gold chart [Kitco Inc.]

September silver futures bulls have the solid overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $20.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $18.00. First resistance is seen at this week’s high of $19.87 and then at $20.00. Next support is seen at the overnight low of $19.355 and then at $19.24. Wyckoff's Market Rating: 8.5. 

Live 24 hours silver chart [ Kitco Inc. ]

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