Gold Up; FOMC Minutes A Non-Event As Traders Await U.S. Jobs Report
(Kitco News) - Gold and silver prices are modestly to slightly higher in early-afternoon U.S. trading Thursday, on mild corrective rebounds after both metals hit multi-month lows earlier this week. This afternoon’s release of the minutes from the latest meeting of the Federal Open Market Committee (FOMC) did not have a significant impact on precious metals prices. August gold futures were last up $3.60 an ounce at $1,256.90. July Comex silver was last up $0.017 at $16.06 an ounce.
The FOMC minutes saw committee members concerned about the economic impact of the trade disputes between the U.S. and its major trading partners. The FOMC also lowered slightly the U.S. gross domestic product growth rate for the second quarter.
This morning’s ADP national employment report for June showed a rise of 177,000 versus the forecast for a gain of 185,000 jobs. The more important U.S. employment report from the Labor Department is out Friday morning, with the non-farm jobs number expected to come in at up 195,000 in June. The U.S. dollar index traded down to its session low following the ADP report, which worked to support some buying interest in the metals today.
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The U.S. and China remain headed for the Friday showdown on putting into effect their already-announced trade sanctions against each other. A Chinese official said Thursday the U.S. is firing shots to the world, including itself,” on the trade matter.
The other key “outside markets” today find the U.S. dollar index moderately lower. Nymex crude oil prices are also down on some profit taking after hitting a 3.5-year high on Tuesday. A UBS energy analyst said Brent crude oil prices could briefly hit $100.00 due to a world supply shortage.
Technically, the gold bears still have the firm overall near-term technical advantage. A 2.5-month-old downtrend is in place on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,275.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,230.00. First resistance is seen at today’s high of $1,262.40 and then at $1,270.00. First support is seen at $1,250.00 and then at this week’s low of $1,238.80. Wyckoff's Market Rating: 3.0
The silver bears have the solid overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $16.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $15.50. First resistance is seen at today’s high of $16.195 and then at $16.25. Next support is seen at this week’s low of $15.80 and then at $15.75. Wyckoff's Market Rating: 2.0.
September N.Y. copper closed down 880 points at 282.90 cents today. Prices closed near the session low and hit a 12-month low today. The copper bears have the solid overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 300.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 270.00 cents. First resistance is seen at 285.00 cents and then at 290.00 cents. First support is seen at today’s low of 282.05 cents and then at 280.00 cents. Wyckoff's Market Rating: 1.0.