Gold, silver see price losses as charts turn more bearish
(Kitco News) - Gold and silver prices are lower in early U.S. trading Friday, as a lack of markets-moving fundamental news to end the trading week has the technical traders in a selling mood amid deteriorating near-term chart postures for both markets. August gold futures were last down $12.10 at $1,793.20 and September Comex silver was last down $0.186 at $25.195 an ounce.
Global stock markets were mixed overnight. The U.S. stock indexes are pointed toward firmer openings when the New York day session begins and at or very near record highs. Upbeat U.S. corporate earnings reports this week have buoyed investor hopes but Thursday's rise in U.S. jobless claims did somewhat temper trader and investor enthusiasm. The spreading Delta variant of Covid-19 has also dampened risk appetite this week.
In overnight news, the Euro zone's June manufacturing purchasing managers index (PMI) came in at 63.4, which was a bit better than market expectations. A reading above 50.0 suggests growth in the sector.
The key outside markets today see the U.S. dollar index firmer. Nymex crude oil futures prices are weaker and trading around $71.70 a barrel. Oil prices have made a good recovery this week after falling to a five-week low on Monday. The yield on the U.S. Treasury 10-year note is presently fetching 1.3%.
U.S. economic data due for release Friday includes the U.S. flash services and manufacturing purchasing managers' indexes.
Technically, gold futures bulls and bears are on a level overall near-term technical playing field but the bulls are fading. Bulls' next upside price objective is to produce a close above solid resistance at the July high of $1,835.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,775.00. First resistance is seen at the overnight high of $1,810.70 and then at Wednesday's high of $1,814.40. First support is seen at the overnight low of $1,789.10 and then at $1,780.00. Wyckoff's Market Rating: 5.0
The silver bears have the firm overall near-term technical advantage as prices have this week seen a bearish downside "breakout" from a sideways trading range. Silver bulls' next upside price objective is closing September futures prices above solid technical resistance at $26.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the March low of $23.825. First resistance is seen at the overnight high of $25.535 and then at this week's high of $25.805. Next support is seen at $25.00 and then at this week's low of $24.79. Wyckoff's Market Rating: 3.0.