Slight price pressure on gold and silver Friday, but bulls had a good week

New York (May 21)  Gold and silver prices are modestly lower in early morning U.S. trading Friday, on routine downside corrections in uptrends and some profit taking heading into the weekend, after hitting 3.5-month highs earlier this week. June gold futures were last down $2.50 at $1,879.30 and July Comex silver was last down $0.142 at $27.925 an ounce.

Global stock markets were mixed but mostly higher overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. The U.S. stock index bulls have regained momentum late this week following recent selling pressure. The improved trader/investor risk appetite late this week is a negative element for safe-haven gold and silver.

In overnight news, the Euro zone May composite purchasing managers index (PMI) flash number was reported at 56.9 versus 53.8 in April. The May PMI beat market expectations. The May manufacturing PMI was 62.8 compared to 62.9 in April. A reading above 50.0 suggests growth in the sector.

Copper prices are in decline late this week, partly due to reports China may act to tamp down rising raw commodity prices.

The key outside markets today see the U.S. dollar index weaker and hitting a 4.5-month low. Meantime, Nymex crude oil prices are higher and are trading around $63.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.627%.

U.S. economic data due for release Friday includes the U.S. flash manufacturing PMI, the services PMI, and existing home sales.

Technically, June gold futures bulls have the firm overall near-term technical advantage amid a seven-week-old price uptrend in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at last week’s low of $1,808.40. First resistance is seen at Thursday’s high of $1,885.30 and then at this week’s high of $1,891.30. First support is seen at the overnight low of $1,870.50 and then at Thursday’s low of $1,864.20.

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