Gold a bit weaker as U.S. jobs report on deck
Gold and silver prices are modestly lower in quieter U.S. trading near midday Thursday. The markets are seeing some price consolidation after big moves earlier this week. Also, traders are awaiting a key U.S. data point on Friday morning. February gold was last down $4.40 at $2,043.50. March silver was last down $0.168 at $24.06.
Traders are awaiting the U.S. employment situation report on Friday morning—arguably the most important U.S. data point of the month. The November non-farm payrolls number is seen coming in at up 190,000 versus a rise of 150,000 in the October report. Wednesday’s ADP national employment report showed a modest rise of 103,000 in November, versus expectations for a gain of around 130,000.
In overnight news, China reported its November exports were up 0.5%, year-on-year, while its imports were down 0.6% in the period. The exports were just slightly better than expected, while the imports were a bit less than expected.
Central bank gold purchases remained strong through October – World Gold Council
The key outside markets today see the U.S. dollar index solidly lower. Nymex crude oil prices are near steady and trading around $69.50 a barrel. Prices on Wednesday hit a five-month low. The yield on the benchmark U.S. Treasury 10-year note is presently fetching 4.151%.
Technically, the gold futures bulls still have the overall near-term technical advantage but became exhausted to suggest a near-term market top is in place. Prices are still in a two-month-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in March futures above solid resistance at the record high of $2,152.30. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,000.00. First resistance is seen at Tuesday’s high of $2,059.60 and then at $2,072.70. First support is seen at this week’s low of $2,027.60 and then at $2,015.00. Wyckoff's Market Rating: 6.0
The silver bulls still have the overall near-term technical advantage, but became exhausted to suggest a near-term market top is in place. Prices are still in a two-month-old uptrend on the daily bar chart but the bulls need to show fresh power soon to keep it alive. Silver bulls' next upside price objective is closing March futures prices above solid technical this week’s high of $26.34. The next downside price objective for the bears is closing prices below solid support at $23.00. First resistance is seen at Wednesday’s high of $24.715 and then at $25.00. Next support is seen at today’s low of $24.10 and then at $24.00. Wyckoff's Market Rating: 6.0.
By
Jim Wyckoff
For Kitco News
Tim Moseley