(Kitco News) - Gold prices are again solidly lower in early U.S. trading Friday and hit a three-week low overnight. More profit taking and weak long liquidation from the shorter-term futures traders are featured late this week. Silver prices are also down today and hit a four-week low. Silver bulls have lost all their near-term technical strength. April gold was last down $28.20 at $2,867.70. May silver prices were last down $0.425 at $31.685.
The U.S. data point of the week, the January personal income and outlays report and its personal consumption expenditures (PCE) inflation indexes, saw the PCE price index up 2.5%, year-on-year, which was right in line with market expectations and compares to a rise of 2.6% in the December report. Gold and silver markets saw no major price reactions to the report. Many market watchers breathed a sigh of relief the numbers did not come in hot. Barron’s reports the PCE data “may give the Federal Reserve reason to lower rates again this year.”
Asian and European stock markets were mostly lower overnight. Asian Pacific stock indexes fell sharply, led by the Hang Seng which dropped 3.3%. The Japanese Nikkei which closed down 2.9%. Asian investors were scared by the tech-led sell-off in the U.S. stock market Thursday, and by new U.S. trade tariff threats. U.S. stock indexes are pointed to firmer openings when the New York day session begins.
China vowed to counter President Trump’s latest trade tariff threats “with all necessary measures,” which could mean anything from additional tariffs to tighter export controls, according to Bloomberg.
Bitcoin briefly dipped below $80,000 Friday and is down 20% since last Thursday.
The key outside markets today see the U.S. dollar index slightly firmer. Nymex crude oil futures prices are lower and trading around $69.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.252%.
Other U.S. economic data due for release Friday includes the advance economic indicators report and the Chicago ISM business survey.
Technically, April gold futures bulls have the solid overall near-term technical advantage. However, a price uptrend on the daily bar chart has stalled out. Bulls’ next upside price objective is to produce a close above solid resistance at the contract high of $2,974.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,800.00. First resistance is seen at the overnight high of $2,896.10 and then at $2,900.00. First support is seen at $2,950.00 and then at $2,925.00. Wyckoff's Market Rating: 7.5.
May silver futures bulls have lost their slight the overall near-term technical advantage as a price uptrend on the daily bar chart has been negated. Silver bulls' next upside price objective is closing prices above solid technical resistance at $33.00. The next downside price objective for the bears is closing prices below solid support at $30.00. First resistance is seen at $32.00 and then at $32.61. Next support is seen at the overnight low of $31.535 and then at $31.00. Wyckoff's Market Rating: 5.0.
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