(Kitco News) - Gold prices are solidly up and hit a five-week high in early U.S. trading Friday, on strong safe-haven demand following the overnight Israeli attacks on Iran that are being called major. Silver prices are modestly up. August gold was last up $41.90 at $3,444.30. July silver prices were last up $0.095 at $36.39.
Risk aversion in highly elevated Friday amid the most severe military escalation between Israel and Iran in decades. Targeted Israeli airstrikes overnight killed several of Iran’s top generals and nuclear officials, paralyzing Tehran’s command structure and leaving the regime reeling. Israel said it is preparing for further military action.
Gold prices rose to a five-week high and crude oil prices surged after Israel launched a wave of military strikes against Iranian nuclear and missile sites, raising fears of a broader Middle East conflict that could severely disrupt global energy supplies.
In a post on Truth Social, Trump declared, “Iranian leaders didn’t know what was about to happen. They are all DEAD now, and it will only get worse! There has already been great death and destruction, but there is still time to make this slaughter, with the next already planned attacks being even more brutal, come to an end. Iran must make a deal, before there is nothing left, and save what was once known as the Iranian Empire.”
Asian and European stocks were mostly lower overnight. U.S. stock indexes are pointed to sharply lower openings today in New York.
The key outside markets today see the U.S. dollar index solidly up. Nymex crude oil futures prices are sharply higher, hit a five-month high and trading around $74.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.34%.
U.S. economic data due for release Friday is light and includes the University of Michigan consumer sentiment survey.
Technically, August gold futures bulls have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at last week’s high of $3,427.70. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,250.00. First resistance is seen at the overnight high of $3,467.00 and then at $3,477.30. First support is seen at $3,400.00 and then at Thursday’s low of $3,358.50. Wyckoff's Market Rating: 8.0.
July silver futures bulls have the solid overall near-term technical advantage. Prices are trending higher on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $40.00. The next downside price objective for the bears is closing prices below solid support at $34.00. First resistance is seen at this week’s high of $37.03 and then at $37.50. Next support is seen at $36.00 and then at this week’s low of $35.58. Wyckoff's Market Rating: 7.5.
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