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Price pressure on gold amid higher USDX, lower crude oil

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(Kitco News) - Gold and silver prices are weaker in early U.S. trading Friday, as lower crude oil prices and a higher U.S. dollar index are bearish daily "outside market" forces working against the precious metals, amid a lack of other fresh fundamental news to end the trading week. October gold futures were last down $5.40 at $1,791.50. September Comex silver futures were last down $0.089 at $20.26 an ounce.

Global stock markets were mostly flat overnight. U.S. stock indexes are pointed toward firmer openings when the New York day session begins. The U.S. stock index bulls have had a good summer as prices have been trending higher on the daily bar charts since early June. The "sell in May and go away" stock market maxim did not work this year. However, the historically turbulent months of September and October lie just ahead for the stock market bulls.

Traders and investors are still discussing this week's U.S. inflation reports that came in a bit tamer than expected. While this week's CPI and PPI reports suggest U.S. inflation may have peaked, it appears the Federal Reserve will remain on its path of aggressively tightening U.S. monetary policy to tamp down still-problematic price inflation.

We are into the "dog days" of summer, whereby much of Europe is on vacation and trading volumes in many markets wanes as family vacations take traders away from the marketplace. Trading volumes may remain lighter until after the U.S. Labor Day holiday in early September.

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The key outside markets today see Nymex crude oil prices weaker and trading around $93.30 a barrel. The U.S. dollar index is higher in early U.S. trading. The yield on the 10-year U.S. Treasury note is fetching 2.868%.

U.S. economic data due for release Friday includes import and export price indexes and the University of Michigan consumer sentiment survey.

Live 24 hours gold chart [Kitco Inc.]

Technically, the October gold futures bears have the overall near-term technical advantage. However, a price uptrend is in place on the daily bar chart to suggest a market bottom is in place. Bulls' next upside price objective is to produce a close above solid resistance at $1,850.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the July low of $1,686.30. First resistance is seen at $1,800.00 and then at this week's high of $1,814.40. First support is seen at Thursday's low of $1,788.50 and then at this week's low of $1,776.20. Wyckoff's Market Rating: 4.0

Live 24 hours silver chart [ Kitco Inc. ]

September silver futures bears have the overall near-term technical advantage. However, bulls are working on a price uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $22.00. The next downside price objective for the bears is closing prices below solid support at $19.00. First resistance is seen at Thursday's high of $20.605 and then at this week's high of $20.83. Next support is seen at $20.19 and then at $20.00. Wyckoff's Market Rating: 3.5.

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.