Gold Sees Mild Corrective Rebound From 5-Week Low
(Kitco News) - Gold pricesare slightly higher in early U.S. trading Friday, on a modest corrective bouncefrom selling pressure that drove prices to a five-week low overnight. A solidrally in the U.S. dollar index this week is still squelching buying interest inthe precious metals. June Comex gold futures were last up $1.10 an ounce at $1,319.30.May Comex silver was last down $0.026 at $16.465 an ounce.
Thehighlight of the U.S. economic data points this week is today’s advancefirst-quarter GDP report, which came in at a better-than-expected up 2.3%.Forecasters were expecting GDP to show a rise of 1.8% versus up 2.9% in thefourth quarter of last year. The gold market ticked down just a bit right afterthe GDP report, but then returned to modestly higher price levels seen justbefore its release.
Worldstock markets were mostly higher overnight. U.S. stock indexes are pointedtoward mixed openings when the New York day session begins. Strong corporateearnings reports coming out of the U.S. late this week are helping the stockmarket bulls. A decline in government bond yields late this week is also abullish development for equities.
Inovernight news, a meeting between North Korean and South Korean officials,including North Korea’s Kim Jong Un and South Korean President Moon Jae-in madedramatic progress, with a peace treaty signed declaring the end of the KoreanWar that was fought 65 years ago. This shocking development has many wonderingif Kim Jong Un is sincere.
TheU.K.’s gross domestic product grew only 0.1% in the first quarter, which is theslowest growth rate for the country in five years.
Thekey “outside markets” on Friday morning see the U.S. dollar index trading higherand hitting another 3.5-month high overnight. Meantime, Nymex crude oil pricesare weaker and trading just below $68.00 a barrel.
U.S.economic data due for release Friday includes the employment cost index, theadvance first-quarter GDP estimate, and the University of Michigan consumersentiment survey.
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.2924175530478188)
Technically,Junegold bulls still have the overall near-term technical advantage, but havefaded and need to show fresh power soon to avoid more serious chart damage. Goldbulls' next upside near-term price breakout objective is to produce a closeabove solid technical resistance at $1,350.00. Bears' next near-term downsideprice breakout objective is pushing prices below solid technical support at theMarch low of $1,309.30. First resistance is seen at today’s high of $1,323.00and then at Thursday’s high of $1,328.00. First support is seen at today’s lowof $1,315.80 and then at $1,312.40. Wyckoff's Market Rating: 6.0
![Live 24 hours silver chart [ Kitco Inc. ]](http://www.kitco.com/images/live/silver.gif)
Maysilver futures bulls and bears are on a level overall near-term technicalplaying field. Silver bulls' next upside price breakout objective is closingprices above solid technical resistance at the April high of $17.36 an ounce.The next downside price breakout objective for the bears is closing pricesbelow solid support at the March low of $16.10. First resistance is seen atThursday’s high of $16.58 and then at $16.75. Next support is seen at thisweek’s low of $16.385 and then at $16.25. Wyckoff's Market Rating: 5.0.
By Jim WyckoffFor Kitco News
Follow @jimwyckoff
jwyckoff@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.