Gold prices weaken despite risk appetite easing on Friday

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(Kitco News) – Gold prices are registering modest losses in the first US operations on Friday, despite the appetite for global risk has decreased to end the week of operations and start a new month. By the end of this week, the gold market has ironically tended to follow the direction of the US stock market. USA June gold futures last fell $ 6.10 an ounce to $ 1,688.00. Comex silver prices in May rose $ 0.017 to $ 14,915 an ounce.

World stock markets fell mainly in overnight trading. US stock indices point to lower openings when the New York day session begins. On this last trading day of the week and the first day of the month, the gloomy economic data and corporate earnings reports of the past few days may be bringing home traders and investors to the reality of Covid-19-induced damage that economy is being inflicted on the world. Still, even though 30 million Americans lost their jobs in recent weeks, the US stock indices. USA They have just finished one of their best months and are on the short term price uptrends on daily charts. Some US states USA They are beginning to partially reopen their businesses today.

United States President Trump is increasing his negative rhetoric towards China and on Thursday again suggested that China suppressed Covid-19 information in the early stages in China, even hinting that China may have released the virus on purpose from a laboratory. . Trump also threatened more tariffs against China.

In other news, the European Central Bank said on Friday that economic growth in the euro zone could slow 12% in 2020.

Deep down, and not yet affecting the markets, but worth mentioning, is the prolonged absence in public of North Korean leader Kim Jong Un. In normal times, the market could pay more attention to this matter.

Major external markets see Nymex crude oil down and is trading around $ 18.35 a barrel in June futures. The oil market has seen a sharp rebound this week after the June contract hit a low of just over $ 10.00 on Tuesday. The US dollar index is slightly weaker today again. The golden bulls have faded a lot this week. The performance of US Treasury bonds. USA At 10 years, it is trading around 0.6% this morning.

The economic reports of EE. USA Released today includes the US Manufacturing Purchasing Managers Index (PMI). USA, The ISM Manufacturing Report on Auto Industry Business, Construction Spending and Sales.

Technically, gold bulls have the overall short-term technical advantage, but now they are fading and need to show new power soon to keep an uptrend alive on the daily bar chart. Bulls’ next upside price objective is to produce a June futures close above solid resistance at the April high of $ 1,788.80. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $ 1,666.20. The first resistance is seen at $ 1,700.00 and then at $ 1,707.80. First support is seen today at the low of $ 1,676.00 and then at $ 1,666.20. Wyckoff Market Rating: 6.5

The July Silver Futures Bulls and Bears are back at a short-term overall technical game level. The next upside price objective for silver bulls is to close prices above solid technical resistance at the April high of $ 16,505 an ounce. The next downside price breakout target for bears is to close prices below solid support at $ 14.00. First you see the resistance to the nightly high of $ 15.15 and then at $ 15.25. The next support is seen today at the low of $ 14.82 and then at $ 14,715. Wyckoff Market Rating: 5.0.