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(Kitco News) - Gold and silver prices are a bit weaker but have rebounded from daily lows in early U.S. trading Friday, in the immediate aftermath of U.S. inflation data that ran a little hotter than market expectations. A higher U.S. dollar index on this last trading day of April is also a negative for the metals markets. June gold was last down $5.50 at $1,993.50 and May silver was down $0.068 at $24.92.
The U.S. data point of the day saw the personal income and outlays report for March showing the closely watched component, the PCE core price index, coming in at up 4.6%, year-on-year versus expectations for up 4.5%, and compares to last month’s reading of up 4.6%. Also closely watched is the employment cost index report for the first quarter that came in at up 1.2%, compared to expectations for a rise of 1.0% from the fourth quarter. These numbers are a bit hotter than expected, on the U.S. inflation front. They fall into the hawkish camp on Federal Reserve monetary policy, that wants to see interest rates higher for longer.
Global stock markets were mostly higher overnight. U.S. stock indexes are pointed toward weaker openings when the New York day session begins, following solid gains posted Thursday that pulled the indexes out of their recent slump.
Traders and investors are already looking ahead to next week when the Federal Reserve’s Open Market Committee (FOMC) meets and is expected to raise the key U.S. interest rate by 0.25%. The European Central Bank also meets next week. The ECB is also expected to raise its main interest rate by a quarter-point.
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| World Bank sees gold prices outperforming broader commodity sector as economic growth weighs on demand |
The key outside markets today see the U.S. dollar index solidly higher. Nymex crude oil prices are slightly up and trading around $75.00 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching around 3.477%.
Other U.S. economic data due for release Friday includes the Chicago ISM business survey and the University of Michigan consumer sentiment survey.
![Live 24 hours gold chart [Kitco Inc.]](/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, the gold futures bulls have the firm overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at the April high of $2,063.40. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the April low of $1,965.90. First resistance is seen at $2,000.00 and then at this week’s high of $2,020.20. First support is seen at last week’s low of $1,980.90 and then at $1,965.90. Wyckoff's Market Rating: 7.0
![Live 24 hours silver chart [ Kitco Inc. ]](/images/live/silver.gif)
The silver bulls have the overall near-term technical advantage. Silver bulls' next upside price objective is closing May futures prices above solid technical resistance at the April high of $26.235. The next downside price objective for the bears is closing prices below solid support at $23.50. First resistance is seen at this week’s high of $25.435 and then at last week’s high of $25.71. Next support is seen at this week’s low of $24.53 and then at $24.25. Wyckoff's Market Rating: 7.0.
