(Kitco News) - Gold and silver prices are solidly lower in early U.S. trading Friday, as traders and investors are in slightly better moods to end the trading week. Trading has turned sideways and choppy in both metals late this week. June gold was last down $59.80 at $3,166.80. July silver prices were last down $0.58 at $32.10.
Asian and European stock markets were mixed to weaker in overnight trading. U.S. stock indexes are pointed to firmer openings today in New York. Risk appetite is just a bit better to end a trading week that saw the U.S. and China make moves to thaw their trade cold war.
Reads a Barrons headline today: “Walmart’s and Fed’s warnings are red flags. Why markets must pay attention.” The story notes Walmart’s CEO on Thursday saying that tariffs are already impacting costs—and the higher costs are before supplies get shorter after a month of a virtual trade embargo with China. Then Fed Chair Jerome Powell warned on Thursday “more frequent and potentially more persistent supply shocks” could hit the U.S. economy. This scenario strongly suggests no interest rate cuts coming from the Fed anytime soon.
The key outside markets today see the U.S. dollar index slightly weaker. Nymex crude oil futures prices are slightly up and trading around $62.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.404%.
U.S. economic data due for release Friday includes new residential construction, import and export prices, Treasury international capital data and the University of Michigan consumer sentiment survey.
Technically, June gold futures bulls and bears are on a level overall near-term technical playing field but the bulls are fading. Bulls’ next upside price objective is to produce a close above solid resistance at $3,300.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,100.00. First resistance is seen at $3,200.00 and then at $3,250.00. First support is seen at $3,150.00 and then at this week’s low of $3,123.30. Wyckoff's Market Rating: 5.0.
July silver futures bulls and bears are on a level overall near-term technical playing field. Silver bulls' next upside price objective is closing prices above solid technical resistance at $33.48. The next downside price objective for the bears is closing prices below solid support at $31.00. First resistance is seen at the overnight high of $32.865 and then at $33.00. Next support is seen at this week’s low of $31.78 and then at $31.50. Wyckoff's Market Rating: 5.0.
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