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(Wallace Refiners) – Gold and silver prices are trading not far from unchanged levels on the day in early U.S. dealings Friday. Bulls are touting safe-haven demand as being supportive for the precious metals, while bears counter that recent rising bond yields and a still-strong U.S. dollar remain in their camp. Both bulls and bears need some new fundamental news to help drive prices. June gold futures were last up $0.40 at $1,841.80. July Comex silver futures were last down $0.098 at $21.80 an ounce.
Global stock markets were mostly up overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. The major stock indexes are not far above their 12-month lows scored recently. Trader and investor risk appetite, on good days, remains tepid at best. A Wall Street Journal headline today read, “Recession trade is on as market pain spreads beyond tech.”
In overnight news, China’s central bank Friday cut a key lending rate, its prime five-year loan rate, by a greater-than-expected 0.15% in a move to boost China’s sagging real estate market. The easing from the central bank of the world’s second-largest economy did buoy global stock markets.
The key outside markets today see Nymex crude oil futures prices a bit higher and trading around $112.50 a barrel. Meantime, the U.S. dollar index is a bit firmer in early trading. The yield on the 10-year U.S. Treasury note is fetching 2.864%.
There is no major U.S. economic data due for release day Friday.
Technically, the June gold futures bears have the firm overall near-term technical advantage. A nine-week-old downtrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at $1,875.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the May low of $1,785.00. First resistance is seen at $1,850.00 and then at $1,859.00. First support is seen at the overnight low of $1,834.80 and then at $1,825.00. Wyckoff’s Market Rating: 3.5
July silver futures bears have the firm overall near-term technical advantage. Prices are in a nine-week-old downtrend on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $23.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the May low of $20.42. First resistance is seen at the overnight high of $22.08 and then at $22.50. Next support is seen at $21.50 and then at $21.25. Wyckoff’s Market Rating: 3.0.
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