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(Kitco News) – Gold prices are lower, hitting a 13-week low in early US trading on Friday. Gold and silver are affected by technical selling in futures markets amid totally bearish short-term charts. A rally in global stock markets amid lower risk aversion in the market at the end of the trading week is also negative for haven metals. June gold futures last fell $12.80 to $1,812.20. July Comex silver futures fell $0.078 to $20.70 an ounce.
Global stock markets were mostly higher overnight. US stock indices point to higher openings as the New York day session begins. US stock indices are seeing a short cover in a bear market after major indices hit 12-month lows on Thursday. Risk aversion may have eased a bit on this last trading day of the week, but remains elevated due to the Russia-Ukraine war, covid in China, and rising global inflation.
In the overnight news, cryptocurrencies including bitcoin rallied on corrective bounces after being scrapped earlier this week.
Key outside markets today see Nymex crude oil futures prices higher and trading around $108.00 per barrel. Meanwhile, the US Dollar Index is weaker in early trading but not far below this week’s 20-year high. The yield on the 10-year US Treasury note is reaching 2.889% after trading above 3% earlier this week. For perspective, the German 10-year bond yield is currently 0.897% and the British 10-year bond yield is 1.718%.
US economic data to be released on Friday includes import and export prices, and the University of Michigan survey of consumer confidence.
Technically, June gold futures bears have a strong overall short-term technical advantage. There is a two-month downtrend on the daily bar chart. The Bulls’ next upside price objective is to produce a close in June futures above solid resistance at $1,875.00. The bears’ next short-term downside price objective is to push futures prices below solid technical support at $1,800.00. The first resistance is seen at the overnight high of $1,827.60 and then at $1,850.00. First support is seen at the overnight low of $1,809.10 and then $1,800.00. Wyckoff Market Rating: 2.5
July silver futures bears have a strong overall short-term technical advantage. Prices on Thursday hit a 22-month low and are in a strong downward trend on the daily bar chart. The next bullish price objective for the Silver Bulls is to close prices above solid technical resistance at $22.50 an ounce. The next downside price objective for the bears is to close prices below the solid support at $20.00. The first resistance is seen at $21.00 and then Thursday’s high of $21.625. The next support is seen at $20.50 and then $20.00. Wyckoff Market Rating: 1.0.
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