Gold price jumps as USDX retreats

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Gold prices are moderately higher and silver prices only slightly higher at the start of trading in the US on Friday. Metals are being supported by a lower US dollar index on this day. August Gold was last up $10.30 to $1,956.00 and September silver was up $0.083 to $24.45.

Asian and European stock markets were mixed in overnight trading. U.S. stock indexes are headed toward higher openings when the New York day session begins. U.S. stock indexes are at or near their highs for the year amid a summer rally.

Traders are awaiting some more U.S. inflation data today, as the personal consumption expenditures (PCE) component of the personal income and spending ratio will be closely scrutinized. The core PCE index in June is seen rising by 4.2%, year-on-year, against a reading of 4.6% in the May report.

On the Nightly News, The Bank of Japan made an unexpected move that the global market noticed. The BOJ did not make any interest rate changes, but said it would allow 10-year Japanese government bond yields (JGB) to be more “flexible” (which means allowing ratings to rise). This is significant because the BOJ has been a last bastion for major central banks with ultra-low interest rates. The BOJ’s new stance on its yield curve range hints at the market that Japanese investors, who have been major holders of U.S. Treasuries, may now move more toward JGBs and their potentially higher yields, and away from U.S. Treasuries. The Japanese Yen gathered in the news.

Major foreign markets today see the U.S. dollar index close to steady. The USDX has made a strong recovery from its July low. Meanwhile, NYMEX crude oil prices are slightly lower and trading around $ 79.75 per barrel. The 10-year US Treasury note is currently at 3.975%.

U.S. economic data due for release Friday includes personal income and spending, the Employment Cost Index and the University of Michigan’s Consumer Sentiment Survey.

Technically, gold futures bulls and bears are on a general short-term technical playing field. A four-week rise in the daily bar chart has been denied. The Bulls ‘ next price target is to produce a near August futures above solid resistance at the July high of $ 1,989.80. The Bears ‘ next near-term price target is to push futures prices under strong technical support to $ 1,900.00. Resistance is first seen at $1,960.00 and then at $1,975.00. First support is seen at this week’s low of $ 1,941.70 and then at $ 1,925.00. Market assessment of the market of the 8.0

Silver Bulls have the small technical advantage of short-term general. However, a four-week trend in the daily bar chart has been denied. Silver bulls ‘ next price target is to close next September prices above strong technical resistance at the July high of $ 25,475. The other negative price target for bears is closing prices below solid support at $ 23.00. The first resistance is seen at $ 25.00 and then at this week’s high of $ 25.325. Next support is seen at this week’s low of $ 24.18 and then at $ 24.00. Market assessment of the 8.5.