(Kitco News) - Gold prices are modestly down and silver prices slightly up in lackluster early U.S. trading Friday. Thursday’s surprising deflation news coming out of China is still a bearish weight on the metals markets to end the trading week. The U.S. stock indexes at record highs are also a negative element for the safe-haven metals. April gold was last down $3.40 at $2,044.50. March silver was last up $0.044 at $22.68.
Asian and European stock markets were mixed in overnight trading. U.S. stock index futures are set to open modestly up today and at new record highs. Risk appetite in the marketplace has been keener this week despite still-elevated geopolitical concerns.
China is getting ready for its Lunar New Year holiday that starts this weekend. Many China markets will be closed for several days next week for the annual holiday.
The key outside markets today see the U.S. dollar index slightly firmer. Nymex crude oil prices are near steady and trading around $76.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching 4.168%.
There is no major U.S. economic data due for release Friday.
Technically, the gold futures bulls have the slight overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in April futures above solid resistance at $2,100.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,000.00. First resistance is seen at the overnight high of $2,050.10 and then at this week’s high of $2,059.10. First support is seen at Thursday’s low of $2,034.60 and then at this week’s low of $2,030.80. Wyckoff's Market Rating: 5.5.
The silver bears have the overall near-term technical advantage. Prices are in a two-month-old downtrend on the daily bar chart. Silver bulls' next upside price objective is closing March futures prices above solid technical resistance at $23.72. The next downside price objective for the bears is closing prices below solid support at the October low of $21.17. First resistance is seen at this week’s high of $22.84 and then at $23.00. Next support is seen at this week’s low of $22.195 and then at $22.00. Wyckoff's Market Rating: 3.0.
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