(Kitco News) - Gold and silver prices are higher, with gold posting soild gains, in early U.S. trading Friday. A dip in U.S. Treasury yields late this week is friendly for the two precious metals markets. Gold and silver traders may be thinking about the old trading adage: “The bond market traders are the smartest guys/gals in the room.” If that’s actually the case, then it can be extrapolated that the late-week dip in U.S. Treasury yields suggests the bond traders believe the Federal Reserve will ease its monetary policy later this year, with at least one interest rate cut, if not two. This notion comes despite the more-hawkish-than-expected FOMC meeting this week. August gold was last up $30.20 at $2,348.00. July silver was last up $0.269 at $29.335.
Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed toward lower openings when the New York day session begins. It’s a quieter end Friday to what was a very busy trading week for the marketplace.
In overnight news, the Bank of Japan said it will reduce its government bond purchases in a signal of monetary policy tightening, but left its main interest rate unchanged. Still, the Japanese yen weakened against the U.S. dollar due to little specifics offered by the BOJ regarding future monetary policy moves.
The key outside markets today see the U.S. dollar index higher and hit a six-week high overnight. Nymex crude oil prices are near steady and trading around $78.75 a barrel. The benchmark 10-year U.S. Treasury note yield is presently 4.25%.
U.S. economic data due for release Friday includes import and export prices and the University of Michigan consumer sentiment survey.
Technically, August gold bulls and bears are on a level overall near-term technical playing field amid recent choppy trading. Bulls’ next upside price objective is to produce a close above solid resistance at the June high of $2,406.70. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the June low of $2,304.20. First resistance is seen at this week’s high of $2,358.80 and then at $2,375.00. First support is seen at $2,330.00 and then at the overnight low of $2,316.70. Wyckoff's Market Rating: 5.0.
July silver futures bulls have the overall near-term technical advantage. However, prices are trending down on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $31.00. The next downside price objective for the bears is closing prices below solid support at $28.00. First resistance is seen at Thursday’s high of $29.83 and then at $30.00. Next support is seen at $29.00 and then at this week’s low of $28.73. Wyckoff's Market Rating: 6.0.
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