Gold, silver weaker, but bulls can escape a rough week of inconvenience

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(Kitco News) – Gold and silver futures markets are lower in early U.S. trading Friday. Late this week, however, prices have stabilized after Tuesday’s big losses that rattled the bulls. If gold and silver marks do not see significantly stronger losses on the close Friday than there are today, then Bulls will escape a rough week without becoming major offensive cards. October gold futures were down $ 12.80 a year at $ 1,949.10. September Comex silver prices were last down $ 0.918 at $ 26.80 an ounce.

Global stock markets were mixed overnight, with European indices mostly down and Asian stock markets mostly up. US stock indices are pointing to lower openings as the New York Day session begins. Risk appetite is still very optimistic to end the trading week, even though Covid-19 infections around the world are severely worrying and the U.S. Congress is out to provide further relief to Americans.

The US point of economic data of the day will be the retail sales report for July, which is expected to reach 2.3% in June, after a rise of 7.5% seen in June.

Traders and investors will be watching the weekend meeting between US and China trade executives, in which they will review the “Phase 1” trade agreement in January. Many are wondering if the meeting will be cordial, given the harsh rhetoric that has been exchanged between the two largest economies in recent months.

In overnight news, the Eurozone GDP fell in 12.1% in the second quarter from the first quarter and down 15.0%, year on year. Those numbers came in line with market expectations, but still carry by historical standards.

The major foreign markets today see Nymex prices for crude oil weaker and trading around $ 42.00 per barrel. The US dollar index is slightly lower. The yield on the benchmark US Treasury 10-year note currently stands at 0.69%.

Other U.S. economic data to be released Friday include preliminary productivity and costs, manufacturing and trade inventory and sales, the University of Michigan research study, and industrial production and capacity use.

Technically, the golden bulls have the solid overall technical advantage over the long term, but need to defend what the latest “reaction low” is in the still existing price trend on the daily chart – this week’s low of $ 1,865.00. A drop below that level would ignore the uptrend of the short term to suggest that a market is in place in the near term. Bulls’ next upside price target is producing an end in October futures above solid resistance at $ 2,000.00. Bears’ next near-downside price target for close is pushing futures prices under solid technical support at $ 1,865.00. Initial resistance is seen at Thursday’s high of $ 1,966.30 and then at $ 1,980.00. Initial support is seen at Thursday’s low of $ 1,914.90 and then at $ 1,900.00. Wyckoff’s Market Value: 7.5

September’s silver futures bulls have the solid overall technical advantage over the long term, but need to defend what the latest ‘reaction low’ is in the still-existing price trend on the daily chart – this week’s low of $ 23.58. A drop below that level would ignore the uptrend of price to suggest that a near-term market top is in place. The next goal of Silver Bull is to close prices above solid technical resistance at $ 30.00 an ounce. The next objective of the bear price disadvantage is to close prices under fixed support at $ 23.58. First resistance is seen at the full high of $ 27,885 and then at $ 28.00. Next support is seen at $ 26.00 and then at Thursday’s low of $ 25,355. Wyckoff’s Market Value: 7.5.