(Kitco News) – Gold and silver prices are slightly lower in U.S. trading early Friday morning, following profit taking and rendering on the last trading day of May. Don’t be surprised to see the bulls come in and buy these small drops in gold and silver prices, as technical postures for both metals remain bullish. June gold futures lost $ 4.80 to $ 1,890.90 and July Comex silver lost $ 0.335 to $ 27.59 an ounce.
The US data point for Friday is the just released April Personal Consumption (Consumer Spending) report. The report showed a 0.5% increase in spending, which was very much in line with the consensus forecast of 0.5% from March. The consumer price / personal expenditure index for April was up 0.6% from March and 3.6% year-on-year. Precious metals markets show no significant reaction to the data.
Global equity markets have generally been firmer overnight. US stock indices point to higher openings when the New York day session begins. This week, the market appeared less concerned with the problematic price inflation that would occur in the months to come.
President Biden’s budget is expected to be released today. That will bring federal spending to $ 6 trillion in the next fiscal year and to over $ 8 trillion in the next fiscal year, according to reports.
The main foreign markets now see the US dollar index significantly higher. Nymex crude oil prices are higher, close to this year’s high, and trading around $ 67.25 per barrel. The yield on the benchmark 10-year US Treasury bill is currently around 1.611%.
Other US economic data due for release Friday includes the Leading Economic Indicators report, the Chicago Purchasing Managers Index and the University of Michigan Consumer Sentiment Survey.
Technically, the bulls in June gold futures have a strong overall short-term technical advantage amid a two-month upward price trend in place on the daily bar chart. The Bulls’ next bullish price target is to produce a close above solid resistance at the January high of $ 1,969.10. The next short-term price drop target for the Bears is to push futures prices under strong technical support at $ 1,850.00. First resistance is seen at $ 1,900.00 and then this week’s high of $ 1,913.30. First support is seen at this week’s low of $ 1,873.20 and then $ 1,860.00. Wyckoff Market Score: 7.0
Silver bulls have the overall firm short-term technical advantage amid a two-month uptrend in price up on the daily bar chart. The next bullish price target for Silver Bulls is to close July futures prices above strong technical resistance at $ 30.00 an ounce. The next lower price target for the bears is to close the price below solid support at $ 26.00. First resistance is seen at $ 28.00, then this week’s high of $ 28.34. The next support is seen at $ 27.265 and then at $ 27.00. Wyckoff Market Rating: 7.0.
Warning: The opinions 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 the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. This is not a solicitation to exchange commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for any loss and / or damage resulting from the use of this publication.