Gold Gets Mild Lift From Slightly Downbeat U.S. Jobs Report
(Kitco News) - Gold prices are slightly up in early U.S. trading Friday, getting a modest boost from a U.S. employment report non-farm jobs number that was weaker than market expectations. However, a firmer U.S. dollar index is limiting the upside in gold and silver. June Comex gold futures were last up $2.50 an ounce at $1,315.00. July Comex silver was last up $0.038 at $16.485 an ounce.
The just-released April U.S. employment report from the Labor Department showed the key non-farm payrolls number at up 164,000. The number was forecast to come in at up 195,000. However, the overall unemployment rate declined by 0.1%, to 3.9%. The marketplace is deeming the report a bit weaker than expected, but not enough to change the course of U.S. monetary policy.
In other news, a highly anticipated U.S.-China trade meeting in China this week has ended. A statement from China said some agreements were made, but there remain “significant disagreements over certain issues.” The two sides agreed to continue to negotiate. The U.S. has not yet released a statement following the meetings, which were held to try to avert a trade war between the world’s two largest economies. Â
The outside markets today see the U.S. dollar index trading firmer but down from the overnight high, and still not far below this week’s 4.5-month high. Meantime, Nymex crude oil prices are higher and trading just below $69.00 a barrel.
Other U.S. economic data due for release Friday includes the global services purchasing managers’ index (PMI).
Technically, June gold bulls and bears are on a level overall near-term technical playing field. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at last week’s high of $1,337.60. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,300.00. First resistance is seen at Thursday’s high of $1,319.00 and then at $1,325.00. First support is seen at the overnight low of $1,309.10 and then at this week’s low of $1,302.30. Wyckoff's Market Rating: 5.0
July silver futures bears have the overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $17.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at this week’s high of $16.62 and then at $16.75. Next support is seen at Thursday’s low of $16.385 and then at $16.25. Wyckoff's Market Rating: 3.5.