Gold, silver pausing Friday to end a hectic week
(Kitco News) - Gold and silver prices are not far from unchanged in early U.S. trading Friday. Traders are taking a step back to assess a big week of major central bank developments, including an aggressive Federal Reserve interest rate hike Wednesday afternoon. August gold futures were last up $2.60 at $1,852.50. July Comex silver futures were last up $0.01 at $21.915 an ounce.
Global stock markets were mixed overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins, on short covering after hitting contract lows on Thursday.
In overnight news, the Euro zone consumer price index for May was reported up 0.8% from April and up 8.1%, year-on-year.
The Bank of Japan reiterated its adherence to an easy monetary policy despite the other major central banks of the world being on a tightening path. That news put still more pressure on the Japanese yen against the dollar.
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The key outside markets today see Nymex crude oil prices slightly up and trading around $118.00 a barrel. The U.S. dollar index is solidly higher in early trading. The yield on the 10-year U.S. Treasury note is fetching 3.22%.
U.S. economic data due for release Friday includes industrial production and capacity utilization and leading economic indicators.
Technically, the August gold futures bears have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at this week’s high of $1,882.50. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at the overnight high of $1,861.50 and then at $1,878.60. First support is seen at $1,825.00 and then at Thursday’s low of $1,816.30. Wyckoff's Market Rating: 3.0
July silver futures bears have the firm overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at the June high of $22.565 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 $22.00 and then at $22.25. Next support is seen at Thursday’s low of $21.32 and then at $21.00. Wyckoff's Market Rating: 3.0.