(Kitco News) – Gold prices are weaker in early U.S. trading Friday but up from overnight lows following a new social media post from President Trump that somewhat rattled the stock market bulls and after a key U.S. inflation report that was deemed as not problematic. August gold was last down $22.30 at $3,322.00. July silver prices were last down $0.123 at $33.30.
President Trump just a short time ago posted on social media that he will no longer be “Mr. Nice Guy” with China, regarding trade. That modestly shook the stock market bulls and the stock indexes sold off a bit.
The just-released U.S. data point of the day, if not the week, is the personal income and outlays report that includes inflation indicators closely monitored by Federal Reserve officials. The PCE price index for April came in at up 2.1%, year-on-year and was seen up 2.2%, year-on-year, versus up 2.3% in the March report. The “core” PCE index (excluding food and energy) came in at up 2.5%, year-on-year and was seen up 2.6%, year-on-year and compares to up 2.6% in the March report. These numbers are not far from market expectations and did not significantly move the markets.
Thursday afternoon the U.S. Court of Appeals for the Federal Circuit granted a stay of the lower court’s injunction that had blocked President Trump’s emergency tariffs on a wide range of imports. The ruling temporarily reinstates the tariffs while the administration pursues its appeal of the decision that deemed the levies unauthorized under the International Emergency Economic Powers Act. This decision halts the 10-day countdown previously imposed by the trial court for the administration to suspend tariff collection. It allows the White House to continue enforcing the duties while the appellate court considers the merits of the administration’s arguments. Legal experts expect the case to proceed swiftly, but if the Federal Circuit ultimately sides with the lower court, the administration could still seek emergency relief from the Supreme Court. Meanwhile, trading partners and businesses are left navigating legal uncertainty, as broader questions remain about the president’s authority to impose tariffs unilaterally.
The key outside markets today see the U.S. dollar index firmer. Nymex crude oil futures prices are firmer and trading around $61.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.436%.
Other U.S. economic data due for release Friday includes advance economic indicators, the Chicago ISM business survey, and the University of Michigan consumer sentiment survey.
Technically, August gold futures bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $3,400.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $3,200.00. First resistance is seen at the overnight high of $3,347.00 and then at $3,375.00. First support is seen at $3,300.00 and then at this week’s low of $3,269.10. Wyckoff’s Market Rating: 6.5.
July silver futures bulls have the slight overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $34.015. The next downside price objective for the bears is closing prices below solid support at the May low of $31.78. First resistance is seen at $33.75 and then at $34.015. Next support is seen at $33.00 and then at this week’s low of $32.80. Wyckoff’s Market Rating: 5.5.
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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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