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(Kitco News) – Gold prices are moderately higher in early US trading Friday, on some new safe-haven demand heading into a weekend that could produce a US-China trade deal, or find both countries digging into their heels for a very long trade war. And traders know the US-Iran tensions in the Persian Gulf are still high. August gold futures were up $ 5.1
Asian stock markets were mostly overnight, while European stock indexes were mostly higher. U.S. stock indexes are pointed towards higher openings when starting the New York day session.
Many markets are quieter and pausing amid the Group of 20 confidential taking place in Japan that will feature face-to-face meeting between U.S. President Trump and Chinese President Xi late Friday or this weekend. China has laid out several conditions for the U.S. to make a trade deal, but not to accept them, including lifting sanctions on China telecommunications giant Huawei. The outcome of the US-China summit is still very uncertain and could have major implications for many markets.
In the news, the Euro zone June consumer price index was up 1.2%, year-on-year, which was in line with market expectations but still too low for the liking of the European Central Bank. This inflation report is one more element falling into the camp of the euro zone monetary policy which wants to see the ECB inject more stimulus into the economy.
The key "outside markets" today see Nymex crude oil prices near steady and trading around $ 59.50 a barrel. Meantime, the U.S. dollar index is modestly lower in early U.S. trading.
U.S. economic data due for release Friday includes personal income and outlays, the ISM Chicago business survey, and the University of Michigan consumer sentiment survey.
Technically, the gold bulls still have the solid overall near-term technical advantage. Prices are in a four-week-old uptrend on the daily bar chart. Bulls' next upside price objective is to produce a close in August futures above solid resistance at this week's high of $ 1,442.90. The next near-term downside price breakout objective is pushing August futures prices below solid technical support at $ 1,400.00. First resistance is seen at the overnight high of $ 1,427.80 and then at $ 1,430.00. First support is seen at the overnight low of $ 1,411.30 and then at this week's low or $ 1,401.40. Wyckoff's Market Rating: 7.5
July silver futures bulls have the overall near-term technical advantage. Prices are in a four-week-old uptrend on the daily bar chart, but now just barely. Bulls need to show fresh power soon to keep the uptrend alive. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $ 16.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $ 14,625. First resistance is seen at Wednesday's high of $ 15,355 and then at the June high of $ 15,555. Next support is seen at this week's low of $ 15.12 and then at $ 15.00. Wyckoff's Market Rating: 6.0
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