(Kitco News) - Gold prices are trading sharply lower in early U.S. trading Friday, on heavy profit taking from the shorter-term futures traders, following prices hitting a record high earlier this week. Also, the futures traders that recently got on board the long side and are now quickly under water are being forced to sell (weak long liquidation). Silver futures are also sharply lower and hit a three-week low. August gold was last down $50.60 at $2,406.30. September silver was down $1.039 at $29.185.
Some analysts blame the sell off in gold, in part, on concerns about a weakening economy in China in the coming months, which could decrease demand for raw commodities, including the metals.
Asian and European stock indexes were mostly lower. U.S. stock indexes are pointed toward mixed openings when the New York day session begins.
In overnight news, a major Microsoft/CrowdStrike software glitch has shut down businesses and computers worldwide, including some airlines and banks. Experts are saying the glitch is due to a software upgrade patch and is not a cyberattack.
There are reports that a growing chorus of current and former U.S. lawmakers want President Biden to pull out of the presidential race, saying polling shows he can’t beat former President Donald Trump and also saying Biden is damaging the Democratic party by remaining in the race.
The key outside markets today see the U.S. dollar index a bit firmer. Nymex crude oil prices are slightly down and trading around $82.50 a barrel. The benchmark 10-year U.S. Treasury note yield is presently 4.198%.
There are no major U.S. economic reports out Friday.
Technically, August gold bulls still have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the record high of $2,488.40. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,350.00. First resistance is seen at $2,425.00 and then at the overnight high of $2,448.40. First support is seen at $2,400.00 and then at $2,375.00. Wyckoff's Market Rating: 8.0.
September silver futures bulls have the slight overall near-term technical advantage but have faded badly this week. 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 the June low of $28.90. First resistance is seen at
$29.50 and then at $30.00. Next support is seen at $29.00 and then at $28.90. Wyckoff's Market Rating: 5.5
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