Gold Up A Bit As U.S. Dollar Backs Down

(Kitco News) - Gold and silver prices areslightly higher in early U.S. trading Friday. Gold prices did poke to a nearly12-month low overnight, before rebounding a bit. The precious metals aregetting a bit of a lift as the U.S. dollar index is trading solidly lower todayon a corrective pullback after hitting a 12-month high on Thursday. Augustgold futures were last up $1.70 an ounce at $1,252.80. July Comex silver was last up$0.074 at $16.025 an ounce.

Worldstock markets were mostly higher overnight. U.S. stock indexes are pointed towardhigher openings when the New York day session begins. Little risk aversion inthe marketplace the past few weeks has been a bearish force working against thesafe-haven metals.

Reportsthis morning said U.S. President Donald Trump wants to pull the U.S. out of theWorld Trade Organization, which he says is an anti-U.S. group. However, such amove would take the approval of the U.S. Congress.

Inother overnight news, the Euro zone annual inflation rate was reported at 2.0%in June versus 1.9% in May, year-on-year.

Todayis the last trading day of the week, of the month and of the quarter, whichmakes it a more technically significant trading day for markets.

Thekey “outside markets” today find the U.S. dollar index lower on a correctivepullback after hitting a 12-month high on Thursday. Meantime, Nymex crude oil prices are slightly higher and trading just below $74.00 a barrel. Oil prices Thursdayhit a 3.5-year high.

U.S.economic data due for release Friday includes personal income and outlays, theISM Chicago business survey, and the University of Michigan consumer sentimentsurvey.

Technically,gold bears have the firm overall near-term technical advantage amid the pricedowntrend on the daily bar chart. But the market is technically oversold now. Goldbulls' next upside near-term price breakout objective is to produce a close inAugust futures above solid resistance at $1,286.80. Bears' next near-termdownside price breakout objective is pushing prices below solid technicalsupport at $1,230.00. First resistance is seen at Wednesday’s high of $1,261.90and then at $1,269.40. First support is seen at today’s low of $1,246.90 andthen at $1,240.00. Wyckoff's Market Rating: 2.5

Julysilver futures bears have the firm overall near-term technical advantage.Silver bulls' next upside price breakout objective is closing prices abovesolid technical resistance at $16.75 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at the Decemberlow of $15.805. First resistance is seen at Wednesday’s high of $16.295 andthen at this week’s high of $16.485. Next support is seen at this week’s low of$15.88 and then at $15.805. Wyckoff's Market Rating: 2.5.

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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