(Kitco News) – Gold prices are modestly higher in early US trading on Friday. Some more mild demand demand is discussed late this week as there are some geopolitical issues in play, but no one is currently rattling the trader's cage so badly. June gold futures were up to $ 2.20 an ounce of $ 1,287.40. July Comex silver was up to $ 0.022 at $ 14,795 per ounce.
Focus in early US trading today is on the recently released US consumer price index report for April, which came in at 0.3% from March and up 2.0% y / y. The CPI report was expected to rise by 0.4% from March and up 2.1% from the previous year. A world market theme in recent months has been very thin inflation coming out of the big economies.
World stock markets were mostly overnight. US stock indices point to narrowly mixed openings as the New York day session begins.
There was no eleven-hour trade agreement reached between the United States and China late Thursday. Increased US tariffs on imported Chinese goods came into force at midnight last night. China has promised retribution. Interestingly, China's stock market posted a solid rally Friday after this news. It may be a classic case of "selling rumors, buying fact" regarding the case. Trade negotiations between the US and China will continue in Washington today. It may also be that the Asian stock market rally on Friday was partly due to optimism an agreement can be reached soon, as the two sides still speak. President Trump also said that China President Xi sent him a "beautiful letter" this week and that the two can talk about the matter soon.
The trade conflict between the United States and China during this week has mostly overshadowed another potential geopolitical flashpoint. The Iranian government said this week that it will cease to obey any commitments it made in the United Nations Nuclear Agreement in 201
Also, North Korea is reported to be test-firing missiles again, as President Trump says he doesn't like. This problem can also quickly become a significant marker mover if it escalates.
The "outside markets" key today sees the US dollar index close. Meanwhile, Nymex crude oil prices are firmer and trading just under $ 62.00 a barrel.
Other US economic data due to the release Friday includes real earnings, and the monthly state budget statement.
Technically, the gold bears have the general near-term concept of technical advantage. A 2.5 month old downtrend is in place on the daily line chart. Bull's next upside goal is to produce a near future in solid resistance futures at $ 1,300.00. Bear's next close-up price target is to push prices under solid technical support at $ 1,250.00. First Resistance is seen at this week's elevation of $ 1,292.80 and then at $ 1,300.00. First aid is seen at night low of $ 1,283.90 and then this week's low of $ 1,278.10. Wyckoff's Market Review: 3.5
July silver futures bears have the overall long-term technical advantage. The prices are in a 2.5-month downtrend on the daily line chart. Silver silver's next upside price break target is the final price of solid technical resistance of $ 15.25 per ounce. The next down on the price of the bears is the final price under solid support of $ 14.50. First Resistance is seen at $ 15.00 and then at $ 15.15. Next support is seen this week's low of $ 14705 and then in May low of $ 14.57. Wyckoff's Market Review: 3.0.
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