(Kitco News) - Gold prices are weaker and silver near steady in early U.S. trading Friday, with gold scoring a four-week low and silver a nine-week low overnight. Chart-based selling from the shorter-term futures traders is featured in gold and to a lesser extent in silver so far today. April gold was last down $4.70 at $1,873.60 and March silver was up $0.002 at $22.145.
Global stock markets were mixed overnight. U.S. stock indexes are pointed toward weaker openings when the New York day session begins. Market analyst Craig Erlam of OANDA said today in an email dispatch: "Equity markets are ending the week on a flat or slightly downbeat note, which has largely reflected the mood all week, really. Central bankers, particularly from the Fed, have been out in force stressing caution over interest rate expectations. And it's clearly had an impact following that red-hot U.S. jobs report last week. Markets are now pricing in two more hikes from the Fed and possibly one cut later in the year." A headline in a Barron's report today reads, "The recession has gone missing."
In overnight news, reports said Russia plans on cutting its oil production by 500,000 barrels per day, or about 5%, starting in March, in response to Western sanctions. Oil prices rallied on the news. Oil prices are also being supported on notions of stronger economic growth in China this year. Nymex crude oil futures prices are solidly up and trading around $80.00 a barrel.
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The key outside markets see the U.S. dollar index firmer. The yield on the benchmark U.S. 10-year Treasury note is presently fetching 3.705%. Treasury yields have climbed following last week's stronger U.S. jobs report.
U.S. economic data due for release Friday is light and includes the University of Michigan consumer sentiment survey and the monthly Treasury budget statement.
![Live 24 hours gold chart [Kitco Inc.]](/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, the gold futures bulls still have the overall near-term technical advantage but have faded. A bear flag pattern has formed on the daily bar chart. Bulls' next upside price objective is to produce a close in April futures above solid resistance at the February high of $1,975.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,825.00. First resistance is seen at the overnight high of $1,883.50 and then at $1,900.00. First support is seen at the overnight low of $1,863.50 and then at $1,850.00. Wyckoff's Market Rating: 6.0
![Live 24 hours silver chart [ Kitco Inc. ]](/images/live/silver.gif)
The silver bulls have lost their slight overall near-term technical advantage. Silver bulls' next upside price objective is closing March futures prices above solid technical resistance at $23.00. The next downside price objective for the bears is closing prices below solid support at $21.00. First resistance is seen at this week's high of $22.635 and then at $23.00. Next support is seen at the overnight low of $21.83 and then at $21.50. Wyckoff's Market Rating: 5.0.
