 | Get all the essential market news and expert opinions in one place with our daily newsletter. Receive a comprehensive recap of the day's top stories directly to your inbox. Sign up here! |
(Kitco News) - Gold and silver prices are modestly down in early U.S. trading Friday. Quieter summertime trading and no major news developments have the technically based bears controlling price action late this week, amid price downtrends in place on the daily charts for gold and silver. August gold was last down $4.90 at $1,913.00 and July silver was down $0.201 at $22.39.
Asian and European stock markets were mostly higher in quieter overnight trading. U.S. stock indexes are pointed toward firmer openings when the New York day session begins. Friday is the last trading day of the week, of the month and of the quarter, which makes it an extra important day for technically oriented traders.
The U.S. data point of the day is the personal income and outlays report for May, including the PCE price indexes. The PCE core price index is seen coming in up 4.7%, year-on-year, which is the same as the April report reading. Federal Reserve Board members are said to watch the PCE inflation numbers closely.
China got some more downbeat economic data Friday. The world’s second-largest economy’s manufacturing sector remained in contraction. The manufacturing purchasing managers index (PMI) came in at 49.0 in June versus 48.8 May and a 49.0 consensus forecast. The services PMI in June was 53.2 versus 54.5 May and a 53.5 forecast. The composite PMI was 52.3 versus 52.9 in May. A reading above 50.0 suggests growth in the sector. Under 50.0 suggests contraction.
In other overnight news, the Eurozone consumer price index for June came in at up 5.5%, year-on-year, versus the May reading of up 6.1% and a consensus forecast of up 5.6% in June.
|
| Fed will raise rates to 6% in 2023, gold could hit $10k by 2025 - Tom Luongo |
The key outside markets today see the U.S. dollar index near steady. Nymex crude oil prices are near steady and trading around $70.00 a barrel. Meantime, the benchmark 10-year U.S. Treasury note yield is presently fetching 3.878%.
U.S. economic due for release Friday includes personal income and outlays, the ISM Chicago 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 bears have the overall near-term technical advantage. A six-week-old price downtrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in August futures above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at the overnight high of $1,917.80 and then at this week’s high of $1,943.40. First support is seen at the overnight low of $1,908.10 and then at $1,900.00. Wyckoff's Market Rating: 4.0
![Live 24 hours silver chart [ Kitco Inc. ]](/images/live/silver.gif)
The silver bears have the overall near-term technical advantage. Prices are in a six-week-old downtrend on the daily bar chart. Silver bulls' next upside price objective is closing July futures prices above solid technical resistance at $24.00. The next downside price objective for the bears is closing prices below solid support at $21.00. First resistance is seen at $23.00 and then at this week’s high of $23.15. Next support is seen at this week’s low of $22.30 and then at the June low of $22.14. Wyckoff's Market Rating: 4.0.
