(Kitco News) – Gold and silver prices are lower in early U.S. trading Friday. The shorter-term futures trader bulls are squeamish heading into the weekend and are ringing the cash register and taking profits. August gold was last down $23.20 at $3,364.00. July silver prices were last down $0.305 at $36.055.
The marketplace has mostly digested the Wednesday FOMC decision and Fed Chair Powell’s press conference. The Fed made no changes in its monetary policy and expressed continued concern about sticky U.S. inflation. President Trump in a social media post called Powell “dumb” and said U.S. rates need to be 2.5% lower. Don’t look for the Fed to cut interest rates anytime soon, which is a bearish scenario for the precious metals markets.
Asian and European stocks were mixed overnight. U.S. stock indexes are pointed to slightly lower openings today in New York. Risk appetite is not keen to end the trading week. President Trump has essentially given Iran some time to come to the negotiating table regarding its nuclear weapon ambitions. Trump said he’s going to take a couple weeks to think about the U.S. joining Israel in its war with Iran, while hoping Iran capitulates.
The key outside markets today see the U.S. dollar index weaker. Nymex crude oil futures prices are higher and trading around $76.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.39%.
U.S. economic data due for release Friday includes the Philadelphia Fed business survey, and leading economic indicators.
Technically, August gold futures bulls have the firm overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the June high of $3,476.30. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $3,300.00. First resistance is seen at the overnight high of $3,387.20 and then at $3,400.00. First support is seen at $3,350.00 and then at the June low of $3,313.10. Wyckoff’s Market Rating: 7.5.
July silver futures bulls have the firm overall near-term technical advantage. However, a bearish broadening pattern has formed on the daily bar chart, which begins to suggest a market top is in place. Prices are still 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 $36.50 and then at $37.00. Next support is seen at the overnight low of $35.515 and then at $35.00. Wyckoff’s Market Rating: 7.5.
Jim Wyckoff has spent over 25 years involved with the stock, financial and commodity markets. He was a financial journalist with the FWN newswire service for many years, including stints as a reporter on the rough-and-tumble commodity futures trading floors in Chicago and New York. As a journalist, he has covered every futures market traded in the U.S., at one time or another.
Jim is the proprietor of the “Jim Wyckoff on the Markets” analytical, educational and trading advisory service. Jim also worked as a technical analyst for Dow Jones Newswires and as the senior market analyst with TraderPlanet.com. Jim is also a consultant with the highly respected “Pro Farmer” agricultural advisory service. Jim was also the head equities analyst at CapitalistEdge.com. He received his degree from Iowa State University in Ames, Iowa, where he studied journalism and economics.
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