Gold, silver see corrective price rebounds heading into weekend
(Kitco News) - Gold and silver prices are higher in early U.S. trading Friday, on upside corrections after recent selling pressure. Short covering from futures traders is also featured in both metals, heading into the weekend. Gold prices hit a 15-month low Thursday. August gold futures were last up $15.30 at $1,728.00. September Comex silver futures were last up $0.081 at $18.80 an ounce.
Global stock markets were mixed to flat overnight. U.S. stock indexes are pointed toward mixed openings when the New York day session beings, on corrective pullbacks and pauses after a week of good gains. The U.S. stock index bulls have started near-term price uptrends on the daily bar charts.
In overnight news, the Euro zone July manufacturing purchasing managers index (PMI) came in at 49.6 compared to expectations for a reading of 51.0. A reading below 50.0 suggests contraction in the sector. The July services PMI came in at 50.6 compared to a forecast of 52.0.
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The key outside markets today see Nymex crude oil prices down and trading around $95.50 a barrel. The U.S. dollar index is slightly up in early U.S. trading. The yield on the 10-year U.S. Treasury note is fetching 2.823%.
U.S. economic data due for release Friday includes the U.S. flash services and manufacturing purchasing managers indexes.
Technically, the August gold futures bears have the solid overall near-term technical advantage. Prices are trending lower on the daily bar chart. However, a bullish weekly high close on Friday would be one chart clue that a market bottom is in place. Bulls’ next upside price objective is to produce a close above solid resistance at $1,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,650.00. First resistance is seen at $1,735.00 and then at $1,750.00. First support is seen at the overnight low of $1,711.70 and then at $1,700.00. Wyckoff's Market Rating: 2.0
September 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 $20.00. The next downside price objective for the bears is closing prices below solid support at $17.00. First resistance is seen at $19.00 and then at $19.36. Next support is seen at $18.50 and then at $18.25. Wyckoff's Market Rating: 1.5.