Gold Slightly Up Ahead Of Uncertain Weekend

(Kitco News) – Gold prices are slightly higher in early U.S. trading Friday, as traders are edgy ahead of a weekend French presidential vote and still-heightened geopolitical tensions. June Comex gold was last up $0.90 an ounce at $1,284.70. May Comex silver was last down $0.078 at $17.94 an ounce.

European stock markets were a bit weaker overnight, after a suspected terror attack in France and ahead of the French presidential elections on Sunday. Asian stock markets were mostly firmer. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins.

An apparent terror attack in Paris left one police officer dead.

The first round of the French presidential elections will be held Sunday. The second round will be on May 7. European market watchers are getting more nervous as the French elections approach and polls show tight races. The very existence of the European Union could hinge upon elections in the European Union this year.

Heading into the weekend there are still geopolitical tensions–the U.S. and North Korea, and the U.S. and Russia. This week’s hawkish U.S. posturing against its world adversaries is unsettling for many world market watchers and is also a bullish element for safe-haven gold.

The key outside markets on Friday morning see the U.S. dollar index higher on a corrective bounce from this week’s selling pressure. Meantime, Nymex crude oil prices are near steady following strong selling pressure seen Wednesday, on ideas of rising U.S. crude oil production levels.

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

(Note: Follow me on Twitter–@jimwyckoff–for breaking market news.)

Live 24 hours gold chart [Kitco Inc.]

Technically, June gold futures bulls still have the overall near-term technical advantage. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. Bears’ next near-term downside price breakout objective is closing prices below solid technical support at $1,264.20. First resistance is seen at $1,292.70 and then at this week’s high of $1,297.40. First support is seen at this week’s low of $1,275.40 and then at $1,268.10. Wyckoff’s Market Rating: 6.5

Live 24 hours silver chart [ Kitco Inc. ]

May silver bulls have the overall near-term technical advantage but have faded this week. Silver bulls’ next upside price breakout objective is closing futures prices above solid technical resistance at this week’s high of $18.655 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the April low of $17.735. First resistance is seen at Thursday’s high of $18.22 and then at $18.325. Next support is seen at this week’s low of $17.845 and then at $17.735. Wyckoff’s Market Rating: 6.0.