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Gold Consolidating; Silver Trying to Break Out

Commentaries & Views

Gold is holding the big gains for the week. Since spiking to the highs on Tuesday, it has been churning around the $1,340 level. Silver continues to push hard, trying to break out and follow gold to new highs.

Today is jobs Friday, which almost always creates a reaction in the metals because of the possible effect it will have on interest rates. We know that the bond markets are pricing in a rate cut, which Fed Chair Jerome Powell confirmed earlier this week.

The big question: have gold and silver already accounted for a bad number with their rallies this week? The answer is a resounding probably. Most news is priced in and expected; the only curve ball for this report is the ADP jobs that came out on Wednesday, which was the worst in years. ADP jobs and the government report don’t always match. Today could be wild, helping the metals break out.

Because of the news, the only thing to do before the number is to observe and be prepared to react after the number comes out at 8:30 a.m. EDT. There is no doubt that gold is now trending up, which should continue, but will the jobs number help push gold above $1350, which is the key resistance?

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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