Gold price steady amid a somewhat calmer marketplace Friday
(Kitco News) - Gold and silver prices are not trading far from unchanged in early U.S. action Friday. The metals traders are watching the key outside markets, which are calmer to end the trading week. June gold futures were last up $0.30 at $1,938.50 and May Comex silver was last up $0.05 at $24.79 an ounce.
Global stocks markets were mixed but mostly higher overnight. The U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins. Risk aversion is less keen late this week. There are still major concerns about the Russia-Ukraine war, a more hawkish U.S. Federal Reserve and rising global inflation. However, from a markets perspective, there have been no major developments on those fronts late this week, which has allowed traders and investors to exhibit just a bit more risk appetite.
In overnight news, Russia’s central bank lowered its main interest rate from 20% to 17% in a sign Russia’s financial system has stabilized after being severely disrupted by the war and economic sanctions. The Russian ruble has also staged a recovery from its depths seen in the first couple weeks of the war.
|World is 'on the cusp of new inflationary era' and adjustment to higher rates won't be easy, warns BIS|
Reports said JP Morgan has warned raw commodity prices could surge by another 40% if investors move their allocations into raw materials at a time of rising inflation. Problematic inflation has been historically bullish for commodity markets.
Nymex crude oil futures prices are firmer today and trading around $96.50 a barrel. The U.S. dollar index is near steady early today and hit a nearly two-year high overnight. The yield on the 10-year U.S. Treasury note is presently fetching 2.67%. Treasury yields have risen significantly this week.
U.S. economic data due for release Friday is light and includes the monthly wholesale trade report and the USDA monthly supply and demand report.
Technically, the June gold futures bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in April futures above major resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,850.00. First resistance is seen at Thursday’s high of $1,941.70 and then at $1,950.00. First support is seen at Thursday’s low of $1,923.30 and then at this week’s low of $1,916.20. Wyckoff's Market Rating: 6.0
May silver futures bulls have the slight overall near-term technical advantage but need to show more power soon to keep it. Silver bulls' next upside price objective is closing prices above solid technical resistance at $25.50 an ounce. The next downside price objective for the bears is closing prices below solid support at the March low of $24.045. First resistance is seen at the overnight high of $24.845 and then at $25.00. Next support is seen at Thursday’s low of $24.335 and then at this week’s low of $24.20. Wyckoff's Market Rating: 5.5.