Gold Weaker As World Marketplace in Upbeat Mood

(Kitco News) - Gold prices areslightly lower in early U.S. trading Friday. The yellow metal is seeing sellingpressure late this week from a marked uptick in trader and investor riskappetite, as evidenced by the late-week rally in world stock markets. June Comex gold futures were last down $2.00 an ounce at $1,339.90. May Comex silver was last up $0.022 at $16.495 an ounce.

However,don’t be surprised if safe-haven gold finishes the day above unchanged, headinginto a still-uncertain weekend. U.S., Syria and Russia tensions are still high,with the threat of a U.S. military strike on Syria still very real.

Worldstock markets were mostly firmer overnight. U.S. stock indexes are pointedtoward higher openings when the New York day session begins. This week has seena marked improvement in trader and investor risk appetite, despite the rising animositybetween the U.S., Russia and Syria. The perceived improving prospects for anegotiated trade agreement between the U.S. and China-the world’s two largesteconomies-have put the marketplace more at ease.

Thekey “outside markets” on Friday morning see the U.S. dollar index slightlyhigher. Nymex crude oil prices are slightly lower after hitting a 3.5-year highovernight.

U.S.economic data due for release Friday is light and includes the University ofMichigan consumer sentiment survey.

Technically,Junegold bulls still have the overall near-term technical advantage, but havefaded late this week. Gold bulls' next upside near-term price breakoutobjective is to produce a close above solid technical resistance at the Januaryhigh of $1,375.50. Bears' next near-term downside price breakout objective ispushing prices below solid technical support at the March low of $1,309.30.First resistance is seen at today’s high of $1,344.70 and then at $1,350.00.First support is seen at today’s low of $1,335.50 and then at this week’s lowof $1,330.10. Wyckoff's Market Rating: 6.0

May silver futures bears have the slight overall near-term technical advantage amidrecent choppy trading. Silver bulls' next upside price breakout objective isclosing prices above solid technical resistance at $17.00 an ounce. The nextdownside price breakout objective for the bears is closing prices below solidsupport at $16.00. First resistance is seen at Thursday’s high of $16.69 andthen at Wednesday’s high of $16.89. Next support is seen at this week’s low of$16.295 and then at last week’s low of $16.15. Wyckoff's Market Rating: 4.5.

By Jim Wyckoff

For Kitco News

Follow @jimwyckoffjwyckoff@kitco.comwww.kitco.com Disclaimer: The views 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 accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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