(Kitco News) - Gold and silver prices are firmer in early U.S. trading Friday, as the precious metals bulls are working to stop the bleeding and stabilize their markets. June gold was last up $4.10 at $2,341.30. July silver was last up $0.295 at $30.75.
A feature in the overall marketplace late this week has been the plunge in gold prices. June Comex gold futures have dropped over $100 below Monday’s record high of $2,454.20. An ominously bearish double-top reversal pattern has formed on the daily bar chart for June gold. That suggests a near-term market top is in place. Fundamentally, precious metals markets bulls did not like the slightly more hawkish lean on U.S. monetary policy from the FOMC minutes that were released Wednesday afternoon. Goldman Sachs reportedly said in a note late this week that gold has more upside due to better demand from Asian countries and from central banks, and from likely lower U.S. interest rates later this year.
Asian and European stock indexes were mixed to weaker overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. The S&P and Nasdaq futures prices hit record highs Thursday and then promptly reversed course to close lower and score potentially bearish “key reversals” down. Follow-through selling Friday would confirm the bearish key reversals, which would be one technical clue that market tops are in place.
The key outside markets today see the U.S. dollar index lower. Nymex crude oil prices are weaker and trading around $76.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is fetching 4.47%.
U.S. economic data due for release Friday includes the University of Michigan consumer sentiment survey and durable goods orders.
Technically, the gold futures bulls still have the overall near-term technical advantage but are fading. An ominously bearish double-top reversal pattern forming on the daily bar chart. That’s one technical clue that a near-term market top is in place. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at the record high of $2,454.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,300.00. First resistance is seen at $2,350.00 and then at $2,365.00. First support is seen at the overnight low of $2,326.30 and then at $2,300.00. Wyckoff's Market Rating: 6.5.
The silver bulls have the firm overall near-term technical advantage. Prices are still in a three-week-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing July futures prices above solid technical resistance at this week’s high of $32.75. The next downside price objective for the bears is closing prices below solid support at $30.00. First resistance is seen at $31.00 and then at $31.50. Next support is seen at the overnight low of $30.235 and then at $30.00. Wyckoff's Market Rating: 7.0.
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