Gold and silver prices up on anxiety ahead of Trump presser on China

May 29, 2020

New York (May 29)  Gold prices are trading moderately higher and silver sharply higher and hitting a three-month high in early U.S. trading Friday, as safe-haven demand has returned to the metals late this week. There is increased risk aversion in the marketplace as the U.S. and China appear on a collision course that could set off the next “cold war” between the two largest economies in the world. President Trump sometime Friday is expected to hold a press conference to address China’s actions to tighten its grip on Hong Kong. Trump will also likely comment on China’s involvement in suppressing early Covid-19 infection rates in China. Still, at present traders and investors have no idea what Trump will say or do. August gold futures were last up $13.80 an ounce at $1,742.00. July Comex silver prices were last up $0.278 at $18.235 an ounce.

Global stock markets were mostly lower in overnight trading. U.S. stock indexes are also pointed toward weaker openings when the New York day session begins.

In overnight news, the Euro zone consumer price index for May rose 0.1% compared to up 0.3% in April. The May reading was in line with market expectations.

The important outside markets see the U.S. dollar index lower early today and hitting a 2.5-month low. Nymex crude oil prices are lower and trading around $32.75 a barrel. The yield on the benchmark U.S. Treasury 10-year note is currently around 0.7%. 

U.S. economic data due for release Friday includes personal income and outlays, the advance economic indicators report, the ISM Chicago business survey, and the University of Michigan consumer sentiment report. Fed Chairman Jerome Powell also speaks at an event today.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bulls have the firm overall near-term technical advantage and are keeping alive a price uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in August futures above solid resistance at the April high of $1,789.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,668.40. First resistance is seen at $1,750.00 and then at this week’s high of $1,755.60. First support is seen at the overnight low of $1,725.30 and then at this week’s low of $1,701.60.


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