Gold, silver see price advances amid weaker USDX dip in bond yields
(Kitco News) - Gold and silver prices are firmer in early U.S. trading Friday, lifted in part by a weaker U.S. dollar index and a slight drop in U.S. Treasury yields on this last day of the trading week. Solid late-week gains in the U.S. stock indexes are limiting the upside in the precious metals markets, however. June gold futures were last up $6.60 at $1,854.00. July Comex silver futures were last up $0.345 at $22.30 an ounce.
The just-released personal income and spending report for April showed the key personal consumption expenditures (PCE) core price index at up 4.9%,year-on-year, which was right in line with market expectations but still near a 40-year high. The markets saw no significant reaction to the as-expected news.
Global stock markets were mostly firmer overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins, following solid gains posted Thursday. Bullish weekly high closes in the U.S. stock indexes today would be one technical clue that near-term market bottoms are in place. Today will be an extra-important trading day for the stock indexes.
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China’s President Xi Jinping’s strict zero covid and other socialist policies risk severely damaging China’s economy. That apparently prompted Premier Li Keqiang’s speech to the nation this week. The premier warned China’s economy is at a critical point and called on officials to work hard for second-quarter economic growth to reduce unemployment. China watchers note it is unprecedented for a premier to challenge the policies of the president. Over 200 million Chinese citizens have been living under lockdown restrictions, which is causing increasing unrest in the world’s second-largest economy.
The key outside markets today see Nymex crude oil futures prices weaker and trading around $113.50 a barrel. Meantime, the U.S. dollar index is slightly up in early trading. The yield on the 10-year U.S. Treasury note is fetching 2.75%.
U.S. economic data due for release Friday includes personal income and outlays, the University of Michigan consumer sentiment survey and advance economic indicators.
Technically, the June gold futures bears have the overall near-term technical advantage. A 2.5-month-old downtrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the May low of $1,785.00. First resistance is seen at today’s high of $1,860.60 and then at this week’s high of $1,869.10. First support is seen at this week’s low of $1,836.30 and then at $1,830.00. Wyckoff's Market Rating: 3.5
July silver futures bears have the overall near-term technical advantage, but the bulls have momentum. A 2.5-month-old downtrend on the daily bar chart has been negated. Silver bulls' next upside price objective is closing prices above solid technical resistance at $23.50 an ounce. The next downside price objective for the bears is closing prices below solid support at the May low of $20.42. First resistance is seen at today’s high of $22.475 and then at $22.75. Next support is seen at today’s low of $21.94 and then at this week’s low of $21.645. Wyckoff's Market Rating: 4.0.