(Kitco News ) - Gold prices are higher and hit a four-week high in early U.S. trading Friday, supported by some tamer U.S. inflation data reported Thursday morning and by friendly outside markets today—a slightly weaker U.S. dollar index and higher crude oil prices. The near-term technical posture for gold has also improved this week, which has prompted some chart-based buying interest. Silver prices are near steady. April gold was last up $7.00 at $2,061.70. March silver was last up $0.019 at $22.685.
Asian and European stock markets were mostly higher in overnight trading. U.S. stock index futures are set to open mixed when the New York day session begins.
In overnight news, China’s official purchasing managers indexes in February showed little change in the pace of expansion. Manufacturing remaining in contraction for the fifth straight month, while growth in services up-ticked in February. China’s manufacturing purchasing managers index (PMI) was
49.1 in February versus 49.2 in January and a 49.0 reading expected. The services PMI was 51.4 versus 50.7 January and 50.7 forecast. The composite PMI was 50.9, the same as in January. Readings below 50.0 suggest contraction in the sector.
In other news, the Euro zone consumer price index for February came in at up 2.6%, year-on-year, versus up 2.8% in January and a forecast for up 2.5%. The core CPI was up 3.1%.
The key outside markets today see the U.S. dollar index a bit weaker. Nymex crude oil prices are higher and trading around $79.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching 4.223%.
U.S. economic data due for release Friday includes the U.S. manufacturing PMI, the ISM report on business manufacturing, the global manufacturing PMI, domestic auto industry sales, construction spending and the University of Michigan consumer sentiment survey.
Technically, the gold futures bulls have gained the slight overall near-term technical advantage. A three-month-old downtrend on the daily bar chart has been negated and prices are starting to trend up. 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 $2,066.10 and then at $2,075.00. First support is seen at $2,050.00 and then at the overnight low of $2,047.00. Wyckoff's Market Rating: 5.5.
The silver bears have the overall near-term technical advantage. Silver bulls' next upside price objective is closing March futures prices above solid technical resistance at the February high of $23.56. The next downside price objective for the bears is closing prices below solid support at the February low of $21.975. First resistance is seen at $23.00 and then at $23.25. Next support is seen at this week’s low of $22.245 and then at $22.00. Wyckoff's Market Rating: 4.0.
(Hey! My “Markets Front Burner” weekly email report is my best writing and analysis, I think, because I get to look ahead at the marketplace and do some market price forecasting. Plus, I’ll throw in an educational feature to move you up the ladder of trading/investing success. And it’s free! Email me at jim@jimwyckoff.com and I’ll add your email address to my Front Burner list.)
