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Gold, silver bulls lose their near-term technical advantage

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(Kitco News) - Gold and silver prices are slightly weaker in early U.S. trading Friday, amid bearish outside markets on this last trading day of the month that see a higher U.S. dollar index and lower crude oil prices. The gold and silver bulls this week have seen their near-term price uptrends on the daily bar charts fizzle out. Such suggests sideways and choppy price action at best in the coming days, or a bit longer. June gold futures were last down $2.00 at $1,766.30 and July Comex silver was last down $0.095 at $25.99 an ounce.

Global stock markets were mixed overnight. U.S. stock indexes are pointed toward lower openings when the New York day session begins on this last day of the month, on some profit taking after the major indexes hit new record highs on Thursday. Also, there is some trader and investor unease as the pandemic is still raging in some countries, including India and Brazil. There was also some downbeat economic data coming out of China Friday, as its manufacturing gauges fell due to computer chip shortages as well as supply chain and shipping logjams.

In other overnight news, Euro zone consumer price inflation for April rose 1.6%, year-on-year, following a 1.3% rise in March. The April number was a bit higher than expected but still not a figure that raises concerns.

The key outside markets today see the U.S. dollar index higher as the greenback is making a late-week rebound. Nymex crude oil prices are lower on profit taking after hitting a six-week high on Thursday and are trading around $63.80 a barrel. Meantime, the yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.645%.   

U.S. economic data due for release Friday includes personal income and outlays, the employment cost index, the Chicago ISM business survey, and the University of Michigan consumer sentiment survey.

Live 24 hours gold chart [Kitco Inc.]

Technically, June gold futures bulls have this week lost their overall near-term technical advantage. A near-term price uptrend on the daily bar chart has been negated. Bulls’ next upside price objective is to produce a close above solid resistance at $1,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,723.20. First resistance is seen at $1,775.00 and then at $1,780.00. First support is seen at this week’s low of $1,754.60 and then at 1,750.00. Wyckoff's Market Rating: 5.0

Live 24 hours silver chart [ Kitco Inc. ]

The silver bulls have lost their overall near-term technical advantage. A four-week-old price uptrend on the daily bar chart has been negated. Silver bulls' next upside price objective is closing July futures prices above solid technical resistance at $27.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $25.00. First resistance is seen at this week’s high of $26.58 and then at the April high of $26.765. Next support is seen at this week’s low of $25.745 and then at $25.50. Wyckoff's Market Rating: 5.0.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.