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Gold price down as risk sentiment improves a bit

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(Kitco News) - Gold and silver prices are weaker in early U.S. trading Friday, with silver scoring a six-week low. The safe-haven metals are seeing some selling pressure as risk appetite has up-ticked modestly late this week. The U.S. stock indexes are poised to close at their weekly high closes today, if they keep their overnight gains. August gold futures were last down $5.00 at $1,824.80. July Comex silver futures were last down $0.192 at $20.865 an ounce.

Global stock markets were mostly up overnight. U.S. stock indexes are pointed toward firmer openings when the New York day session begins.  

The narrative in the marketplace has shifted this week, from one of rising and problematic inflation, to slowing major economies that could slip into recession. This week’s big declines in raw commodity futures prices, including and led by crude oil, are one clue that inflationary pressures may have peaked. The increasing likelihood of recessions in major global economies has prompted commodity traders to reckon demand for commodities will weaken in the coming months. Fed Chairman Jerome Powell in remarks to Congress this week gave little comfort to lawmakers and a marketplace worried about a U.S. recession.

What's gold price outlook as markets shift from inflation to recession fears?

The key outside markets today see Nymex crude oil prices higher and trading around $106.20 a barrel. Looking into next year, January crude oil futures are presently trading around $94.00 a barrel—further hinting at slowing demand due to slowing economies. The U.S. dollar index is weaker in early trading. The yield on the 10-year U.S. Treasury note is fetching 3.057%.

U.S. economic data due for release Friday includes new residential sales and the University of Michigan consumer sentiment survey.

Live 24 hours gold chart [Kitco Inc.]

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 the June 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 $1,833.70 and then at this week’s high of $1,850.30. First support is seen at $1,815.00 and then at the June low of $1,806.10. Wyckoff's Market Rating: 3.0

Live 24 hours silver chart [ Kitco Inc. ]

July silver futures bears have the solid 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 the overnight high of $21.125 and then at $21.50. Next support is seen at the overnight low of $20.735 and then at the May low of $20.42. Wyckoff's Market Rating: 2.0.

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.