(Kitco News) - Gold prices are modestly higher in early U.S. trading Friday, as the market pauses a bit to consolidate this week’s solid gains. Heading into the weekend there is still keener risk aversion in the marketplace that will likely limit any downside pressure in the safe-haven metals. August gold futures were last up $4.40 an ounce at $1,744.10. July Comex silver prices were last down $0.169 at $17.72 an ounce.
Global stock markets were mixed in overnight trading, with Asian stocks mostly down and European stocks mostly up. U.S. stock indexes are pointed toward solidly higher openings when the New York day session begins, but the overnight gains are only about one-third of Thursday’s very sharp losses. Risk aversion has returned to the marketplace late this week, on a surge in Covid-19 cases in some major global economies after they started to reopen businesses, which in turn increased human interaction. It could be that the rise is due to more testing that is prompting more cases to be reported. Traders and investors also got a reminder from the Federal Reserve this week of just how bad is the U.S. and global economic situation at present, and the tough road ahead. President Trump on Thursday criticized the Fed for being too dour in its predictions.
U.S. Treasury Secretary Mnuchin on Thursday said the government is mulling a second round of cash payments to American taxpayers who qualify.
In overnight news, the U.K. reported its economy contracted by 20.4% in April. Meantime, Euro zone industrial output for April was reported down 17.1% from March and down 28% year-on-year—for the largest drop ever recorded.
The important outside markets early today see the U.S. dollar index slightly weaker. The greenback is in a steep downtrend and the USDX hit a three-month low this week. Meantime, Nymex crude oil prices are slightly up and trading around $36.50 a barrel. The yield on the benchmark U.S. Treasury 10-year note is currently around the 0.7% level.
U.S. economic data due for release Friday includes import and export prices and the University of Michigan consumer sentiment survey.
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, the gold bulls are having a very good week as they have negated a price downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in August futures above solid resistance at $1,761.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00. First resistance is seen at $1,750.00 and then at this week’s high of $1,754.90. First support is seen at the overnight low of $1,728.20 and then at Wednesday’s low of $1,714.10. Wyckoff's Market Rating: 7.0
![Live 24 hours silver chart [ Kitco Inc. ]](https://www.kitco.com/images/live/silver.gif)
July silver futures bulls have the firm overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at the February high of $19.075 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.00. First resistance is seen at $18.00 and then at $18.25. Next support is seen at the overnight low of $17.48 and then at last week’s low of $17.375. Wyckoff's Market Rating: 7.0.
