Gold, silver see mild pressure ahead of U.S. jobs data Friday
Gold and silver prices are modestly weaker in midday U.S. trading Thursday. The precious metals traders are tentative ahead of Friday's important U.S. employment report. December gold was last down $3.50 at $1,831.10 and December silver was down $0.201 at $20.945.
Traders are looking ahead to Friday morning's September employment situation report from the Labor Department. The key non-farm payrolls number is expected to come in at up 170,000 compared to a rise of 187,000 in the September report. Wednesday's big downside miss in the ADP jobs report has many now thinking the more important jobs report Friday will also be a miss to the downside. A weakening U.S. economy would actually be a good thing of sorts for the marketplace, in that it would likely cool the ascent in bond yields.
Asian and European stocks were mixed overnight. U.S. stock indexes are lower at midday. Risk aversion is still present late this week. The recent rise in U.S. Treasury yields and other interest rates have soured the global economic outlook, evidenced by the big drop in crude oil prices this week. Reads a Barrons headline today: "8% mortgage rates are on the horizon—and may stick around."
Central banks buy 77 tonnes of gold, helping the precious metal resist rising bond yields
`The key outside markets today see the U.S. dollar index down after hitting a 10-month high Tuesday. Nymex crude oil prices are lower again and trading around $83.00 a barrel. Just last week Nymex crude prices poked just above $95.00 a barrel. Meantime, the benchmark U.S. Treasury 10-year note yield is presently fetching 4.712%.
Technically, December gold futures prices hit another 10-month low today. Bears have the solid overall near-term technical advantage. An accelerating five-month-old price downtrend is in place on the daily bar chart. However, the market is still well short-term oversold and due for a decent corrective bounce very soon. Bulls' next upside price objective is to produce a close above solid resistance at $1,900.00. 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 $1,843.50 and then at $1,850.00. First support is seen at today's low of $1,826.20 and then at $1,815.00. Wyckoff's Market Rating: 1.0.
December silver futures prices were poised to close at a 6.5-month low close today. The silver bears have the solid overall near-term technical advantage. A nine-week-old downtrend is in place on the daily bar chart. However, the market is short-term oversold and due for a corrective bounce very soon. Silver bulls' next upside price objective is closing prices above solid technical resistance at $23.00. The next downside price objective for the bears is closing prices below solid support at the March low of $20.615. First resistance is seen at today's high of $21.455 and then at $22.00. Next support is seen at this week's low of $20.85 and then at $20.50. Wyckoff's Market Rating: 2.0.
December N.Y. copper closed down 285 points at 356.05 cents today. Prices closed nearer the session low and closed at a 10-month low close today. The copper bears have the solid overall near-term technical advantage. Prices are in a choppy, two-month-old downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at last week's high of 378.60 cents. The next downside price objective for the bears is closing prices below solid technical support at 350.00 cents. First resistance is seen at today's high of 360.30 cents and then at Tuesday's high of 364.80 cents. First support is seen at this week's low of 354.90 cents and then at 350.00 cents. Wyckoff's Market Rating: 2.0.
By
Jim Wyckoff
For Kitco News
Contact jwyckoff@kitco.com
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