Gold prices slightly rising as geopolitics on Simmer

(Kitco News) – Gold prices are modestly higher on Friday morning in the United States. A more modest demand for shelters is coming late this week, with some geopolitical issues at stake, but none are currently shaking traders' cages too much. The June gold futures were up $ 2.20 an ounce at $ 1,287.40. The Comex silver medal of the month of July was up $ 0.022 to $ 14.795 an ounce.

At the beginning of the US trading month, we looked at the April report on the recently released US consumer price index, which rose 0, 3% compared to March and 2.0% year-on-year. The CPI report is expected to rise 0.4% from March and 2.1% from one year to the next. A recurring theme in the global market in recent months has been the very moderate inflation of major economies.

Global equity markets have mostly grown overnight. The US stock indexes are headed to very mixed openings at the beginning of the New York daily session.

No eleventh hour trade agreement was reached between the United States and China on Thursday night. The increase in US tariffs on imported Chinese products came into effect at midnight last night. China has promised retaliation. Interestingly, the Chinese stock market posted a solid rally on Friday after this news. It could be a classic case of "selling the rumor, buy the fact" in the matter. Trade negotiations between the United States and China will continue in Washington today. It is also possible that the Asian stock market recovery on Friday is partly due to optimism. An agreement will soon be reached because both parties are still under discussion. In addition, President Trump said that Chinese President Xi had sent him a "nice letter" this week and that the two men could talk about it soon.

The US-China trade conflict this week largely overshadowed another potential geopolitical hot spot. The Iranian government said this week that it will stop honoring some of the commitments made in the UN nuclear deal in 2015. The US has a naval task force in the Persian Gulf, including a aircraft carriers, because of what the United States considers as threats the United States in the region.

In addition, North Korea has reportedly launched test missiles, which President Trump says he does not like. This issue could also quickly become a major market driver if it gets worse.

The key "foreign markets" are now seeing the almost stable US dollar index. Meanwhile, Nymex crude oil prices are firmer and are trading just below $ 62.00 per barrel.

Other US economic data scheduled for release on Friday includes actual profits and the monthly Treasury budget statement.

Technically, gold bears have the overall technical advantage in the short term. A downtrend of 2.5 months is in place on the daily bar chart. Bulls next bullish target is to produce a futures contract in June, above a strong resistance, at $ 1,300.00. Bears' next short-term price reduction target pushes pricing under strong technical support to $ 1,250.00. The first resistance is observed at the top of this week of $ 1,292.80, then $ 1,300.00. The first support is at the bottom of overnight, $ 1,283.90, and the lowest this week, $ 1,278.10. Wyckoff's Market Rating: 3.5

The futures on money in July present the overall technical advantage in the short term. Prices are in a downtrend of 2.5 months on the daily bar chart. The next bullish price target of the Silver Bulls is to close the closing prices above a strong technical resistance at 15.25 dollars an ounce. The next downside price target for the bears is a lower closing price on a strong support at $ 14.50. The first resistance is seen at $ 15.00, then at $ 15.15. The next support is at this week's low, at $ 14.705, then May low, at $ 14.57. Wyckoff Market Estimate: 3.0.