Gold, silver post price advances ahead of key U.S. inflation data - Kitco NEWS

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(Kitco News) - Gold and silver prices are moderately higher in early U.S. trading Friday. Some short covering in the futures market and some bargain hunting in the cash market are featured heading into the weekend. August gold futures were last up $9.30 at $1,785.70 and July Comex silver was last up $0.23 at $26.28 an ounce.

On tap this morning in the U.S. is the personal income and outlays report for May, which is seen down 2.7% from April. The PCE price indexes will be closely watched for their inflation implications, as it’s been said the Federal Reserve very closely follows those indexes. The PCE core price index is expected to come in up 3.4%, year-on-year versus a reading of up 3.1% in April.

Global stock markets were mostly higher overnight. The U.S. stock indexes are pointed toward modestly higher openings when the New York day session begins and are at or near their record highs. There remains little risk aversion in the global marketplace at present, amid a generally calm geopolitical environment. U.S. traders and investors are more upbeat Friday as President Biden on Thursday announced a bi-partisan infrastructure spending plan. However, the plan still faces hurdles before it becomes law.

Reports say Russia is considering levying $2.3 billion in export taxes for steel products, nickel, aluminum and copper. Russia is looking to protect its defense and construction industries from rising international commodity prices. Some analysts said the impact of the extra taxes may be to raise international metals prices still higher.

The key outside markets today see the U.S. dollar index slightly down. Nymex crude oil futures are a bit weaker and trading around $73.15 a barrel after hitting a 2.5-year high of $74.25 on Wednesday. The yield on the benchmark U.S. Treasury 10-year note is presently fetching 1.49%.

Other U.S. economic data due for release Friday includes the University of Michigan consumer sentiment survey.

Technically, August gold futures bears have the overall near-term technical advantage. A bearish pennant pattern has formed on the daily bar chart. Prices are trending lower on the daily chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,850.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00. First resistance is seen at this week’s high of $1,795.60 and then at $1,800.00. First support is seen at the overnight low of $1,773.60 and then at last week’s low of $1,761.20. Wyckoff's Market Rating: 4.0

The silver bears have the overall near-term technical advantage. A bearish pennant pattern has formed on the daily bar chart. Silver bulls' next upside price objective is closing July futures prices above solid technical resistance at $27.50 an ounce. The next downside price objective for the bears is closing prices below solid support at $25.00. First resistance is seen at this week’s high of $26.37 and then at $26.555. Next support is seen at the overnight low of $25.97 and then at this week’s low of $25.58. Wyckoff's Market Rating: 4.0.

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