(Kitco News) – Gold and silver prices are a bit weaker in early U.S. dealings Friday, on normal corrective pullbacks from solid gains posted Thursday. Both metals’ bulls have had a good trading week.
August gold futures were last down $3.30 at $1,827.90 and September Comex silver was last down $0.217 at $25.565 an ounce.
Global stock markets were mostly lower overnight. The U.S. stock indexes are pointed toward lower openings when the New York day session begins. The news on the delta variant of the coronavirus just keeps getting worse and that is starting to unnerve more and more traders and investors. China’s crackdown on Hong Kong protesters and some of its tech companies, as well as some big U.S. companies reporting misses on earnings this week are also giving the bulls pause as the calendar turns to August—typically a month of lower trading volumes as families take vacations before school starts. Friday is the last trading day of the week and of the month, making it an extra important trading day from a technical perspective.
In overnight news, the Euro zone’s July consumer price index came in at up 2.2%, year-on-year, compared to a rise of 1.9% in June and a forecast for up 2.0%. The July rise in CPI does not suggest problematic price inflation.
The key outside markets today see the U.S. dollar index a bit firmer on a corrective rebound from solid selling pressure seen this week that drove the index to a four-week low overnight. Nymex crude oil futures prices are slightly down and trading around $73.25 a barrel. The yield on the U.S. Treasury 10-year note is presently fetching 1.24%.
U.S. economic data due for release Friday includes personal income and outlays, the employment cost index, the Chicago ISM business survey, and the University of Michigan consumer sentiment survey.
Technically, gold futures bulls have the slight overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the July high of $1,835.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,789.10. First resistance is seen at this week’s high of $1,832.60 and then at the July high of $1,835.00. First support is seen at $1,815.00 and then at Thursday’s low of $1,806.10. Wyckoff’s Market Rating: 5.5.
The silver bears still have the overall near-term technical advantage. Prices are still in a 2.5-month-old downtrend on the daily bar chart. However, the bulls had a good week this week. Silver bulls’ next upside price objective is closing September futures prices above solid technical resistance at $26.00 an ounce. The next downside price objective for the bears is closing prices below solid support at this week’s low of $24.515. First resistance is seen at the overnight high of $25.685 and then at this week’s high of $25.875. Next support is seen at $25.25 and then at $25.00. Wyckoff’s Market Rating: 3.5.
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