Short covering, position evening in gold ahead of U.S. jobs data
Gold prices are higher in midday U.S. trading Wednesday, with silver near steady. Short covering and some position squaring are featured in the precious metals futures markets just ahead of an important U.S. economic data point Friday morning. April gold was last up $13.20 at $1,831.70 and May silver was up $0.024 at $20.175.
The general marketplace was quieter Thursday, ahead of the February U.S. employment situation report from the Labor Department on Friday morning. The key non-farm payrolls component of the report is expected to show a rise of 225,000 jobs, following a mammoth rise of 517,000 in the January report. Look for higher volatility in many markets is the non-farm jobs print misses expectations.
Global stock markets were mixed to weaker overnight. U.S. stock indexes are narrowly mixed at midday.Silver mines will likely be bought by automakers like Tesla, silver to $125 per ounce – Keith Neumeyer
The key outside markets today see the U.S. dollar index lower. Nymex crude oil futures prices are slightly up and trading around $76.75 a barrel. The yield on the benchmark U.S. 10-year Treasury note is presently fetching 3.964%.
Technically, April gold futures bulls and bears are back on a level overall near-term technical playing field. Bulls’ next upside price objective is to produce a close above solid resistance at the March high of $1,864.40. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at today’s high of $1,839.40 and then at $1,850.00. First support is seen at $1,820.00 and then at the February low of $1,810.80. Wyckoff's Market Rating: 5.0
May silver futures prices hit a four-month low Wednesday. The silver bears have the firm overall near-term technical advantage. Prices are in a steep five-week-old downtrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $21.50. The next downside price objective for the bears is closing prices below solid support at $19.00. First resistance is seen at $20.505 and then at $21.00. Next support is seen at this week’s low of $19.955 and then at $19.50. Wyckoff's Market Rating: 3.0.
May N.Y. copper closed down 15 points at 402.60 cents today. Prices closed near mid-range. The copper bulls have the slight overall near-term technical advantage but trading has been choppy and sideways recently. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the February high of 423.40 cents. The next downside price objective for the bears is closing prices below solid technical support at 380.00 cents. First resistance is seen at this week’s high of 409.50 cents and then at 415.00 cents. First support is seen at 400.00 cents and then at this week’s low of 396.10 cents. Wyckoff's Market Rating: 5.5.
By Jim Wyckoff
For Kitco News