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A.M. Kitco Metals Roundup: Comex Gold, Silver Trade Near Steady as U.S. Dollar Index Firms, Crude Oil Steady

(Kitco News) - Comex gold and silver futures prices are trading near steady levels Friday morning, amid a lack of major fresh, market-moving fundamental news for traders to digest. Precious metals traders are looking to the crude oil market and the U.S. dollar index for direction. The crude oil futures market is trading steady to slightly higher and the U.S. dollar index is modestly higher in early U.S. trading Friday. June gold last traded up $1.50 an ounce at $1,493.90. Spot gold last traded up $0.50 an ounce at $1,495.00. July Comex silver last traded up $0.014 at $34.94 an ounce.

The precious metals markets have spent this week consolidating within a trading range as choppy, near-term trendless trading has developed.

Crude oil prices are trading steady to slightly higher Friday morning as prices hover around $99.00 a barrel. Crude oil has been and will continue to be the leader in the raw commodity market sector--especially as no major geopolitical or financial developments are grabbing the news headlines. If crude prices can push and hold above $100.00 a barrel, then the commodity sector would see that as a bullish underlying factor due to inflation concerns.

The U.S. dollar index is trading modestly higher Friday morning. The dollar index bulls have faded this week and lost upside near-term technical momentum. A resumption of the near-term price downtrend in the dollar index would be bullish for the precious metals and most other commodity markets.

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

The London A.M. gold fixing is $1,502.75 versus the previous P.M. fixing of $1,493.00.

Technically, June Comex gold futures bulls still have the overall near-term and longer-term technical advantage. Price action the past couple weeks has shown sideways consolidation on the daily chart. Bulls' next near-term upside technical objective is to produce a close above solid technical resistance at last week's high of $1,526.80. Bears' next near-term downside price objective is closing prices below solid technical support at the May low of $1,462.50. First resistance is seen at $1,500.00 and then at this week's high of $1,504.30. First support is seen at Thursday's low of $1,485.80 and then at last week's low of $1,477.60.

July Comex silver futures have seen serious near-term chart damage occur recently, but trading has turned sideways and choppy the past week. The longer prices trade choppy and sideways, the better the odds that the May low of $32.30 will hold. The next downside price breakout objective for the bears is closing prices below solid technical support at $32.30. Bulls' next upside price objective is producing a close above solid technical resistance at $37.00 an ounce. First resistance is seen at Thursday's high of $35.75 and then at $36.00. Next support is seen at Thursday's low of $34.525 and then at $34.00.

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By Jim Wyckoff of Kitco News; jwyckoff@kitco.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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