Gold Slightly Down Amid Lack Of Risk Aversion

(Kitco News) - Gold prices are once again modestly lower in early U.S. trading Friday. Keener risk appetite in the marketplace recently is keeping demand away from the safe-haven metals.

And a strong U.S. dollar continues to limit the upside in gold and silver. June Comex gold futures were last down $1.80 an ounce at $1,287.60. July Comex silver was last down $0.031 at $16.45 an ounce.

World stock markets were mixed in uneventful trading overnight. U.S. stock indexes are pointed toward firmer openings when the New York day session begins. The relatively upbeat trader and investor attitudes in the market place continue to support buying interest in equities.

A feature in the marketplace this week is rising world government bond yields. The U.S. 10-year Treasury note is yielding above 3.0%. The rise in U.S. Treasury yields (falling prices) is a bit surprising, given some geopolitical storm clouds on the horizon.

The key “outside markets” today find Nymex crude oil prices higher and trading above $71.00 a barrel. Meantime, the U.S. dollar index is slightly higher and hit another five-month high overnight.

There is no major U.S. economic data due for release Friday.

Technically, June gold bears have the overall near-term technical advantage. Gold bulls' next upside near-term price breakout objective is to produce a close above what is now solid technical resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the December low of $1,247.20. First resistance is seen at $1,294.00 and then at $1,300.00. First support is seen at this week’s low of $1,284.00 and then at $1,280.00. Wyckoff's Market Rating: 3.5

July silver futures bears have the overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at last week’s high of $16.865 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at $16.565 and then at this week’s high of $16.76. Next support is seen at $16.335 and then at this week’s low of $16.19. Wyckoff's Market Rating: 3.0.

By Jim Wyckoff

For Kitco News

Follow @jimwyckoffjwyckoff@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.

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