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(Kitco News) - Gold and silver prices are not straying too far from unchanged levels in early U.S. trading Friday. That's the case with many markets, heading into a mid-summer weekend. Trader and investor attitudes are significantly more upbeat late this week. Tamer reports on U.S. inflation this week have the marketplace thinking the Federal Reserve may be about done raising interest rates. August gold was last down $0.60 at $1,963.20 and September silver was up $0.096 at $25.045.
Asian and European stock markets were mixed to higher in overnight trading. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins.
Said Craig Erlam of OANDA in a Friday morning email dispatch: "It's shaping up to be quite a relaxed end to the week… on the back of some very encouraging inflation data from the US. Inflation was already well off its highs but there was something about (the U.S. CPI) report that was different. Not only did it beat on the headline and core level but both of the monthly readings were also incredibly positive. Now it's just a question of whether that can be sustained. The light at the end of the tightening tunnel is getting brighter and investors are increasingly confident of emerging after one more (Fed) hike in two weeks. At which point the focus will turn to the U.S. economy and whether a soft landing can still be achieved before the discussion pivots to rate cuts."
The potential "fly in the ointment" for a sustainable global economic recovery is downbeat economic data that has been coming out of China lately. The world's second-largest economy is a voracious consumer of raw commodities. A Wall Street Journal report today said: "Exports are crumbling in China and across Asia, showing the deepening toll that rising interest rates are taking on global trade and economic growth."
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The key outside markets today see the U.S. dollar index near steady and hitting a 15-month low in overnight trading. Meantime, Nymex crude oil prices are near steady and trading around $76.75 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching 3.787%.
U.S. economic data due for release Friday includes import and export prices 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 and bears are on a level overall near-term technical playing field but the bulls have momentum. A nine-week-old price downtrend on the daily bar chart has been negated. 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 this week's high of $1,968.50 and then at $1,975.00. First support is seen at Thursday's low of $1,956.60 and then at $1,950.00. Wyckoff's Market Rating: 5.0
![Live 24 hours silver chart [ Kitco Inc. ]](/images/live/silver.gif)
The silver bulls have the firm overall near-term technical advantage. A three-week-old uptrend is in place on the daily bar chart. Silver bulls' next upside price objective is closing September futures prices above solid technical resistance at the April high of $26.645. The next downside price objective for the bears is closing prices below solid support at $23.00. First resistance is seen at $25.25 and then at $25.50. Next support is seen at $24.835 and then at Thursday's low of $24.31. Wyckoff's Market Rating: 6.5.
