(Kitco News) – Gold prices are lower and hit a 13-week low in early U.S. trading Friday. Gold and silver are being hit by technical selling in the futures markets amid fully bearish near-term charts. A rebound in global stock markets amid less risk aversion in the marketplace to end the trading week is also a negative for the safe-haven metals. June gold futures were last down $12.80 at $1,812.20. July Comex silver futures were last down $0.078 at $20.70 an ounce.
Global stock markets were mostly higher overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. The U.S. stock indexes are seeing short covering in a bear market after the major indexes hit 12-month lows Thursday. Risk aversion may have down-ticked a bit on this last trading day of the week, but it remains elevated due to the Russia-Ukraine war, Covid in China and rising global inflation.
In overnight news, the crypto currencies, including bitcoin, rallied on corrective bounces after their shellacking earlier this week.
The key outside markets today see Nymex crude oil futures prices higher and trading around $108.00 a barrel. Meantime, the U.S. dollar index is weaker in early trading, but not far below this week’s 20-year high. The yield on the 10-year U.S. Treasury note is fetching 2.889% after trading above 3% earlier this week. For perspective, the German 10-year bund yield is presently 0.897% and the 10-year U.K. gilt yield is 1.718%.
U.S. economic data due for release Friday includes import and export prices, and the University of Michigan consumer sentiment survey.
Technically, the June gold futures bears have the solid overall near-term technical advantage. A two-month-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 $1,800.00. 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 at $1,800.00. Wyckoff’s Market Rating: 2.5
July silver futures bears have the solid overall near-term technical advantage. Prices Thursday hit a 22-month low and are trending sharply down on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $22.50 an ounce. The next downside price objective for the bears is closing prices below solid support at $20.00. First resistance is seen at $21.00 and then at Thursday’s high of $21.625. Next support is seen at $20.50 and then at $20.00. Wyckoff’s Market Rating: 1.0.
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