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Gold Prices Sell Off, Back Below $1,400, On Stronger US Jobs Data

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(Kitco News) - Gold prices are solidly lower in early U.S. trading Friday and have extended moderate overnight losses following an upbeat U.S. employment report. August gold futures were last down $22.00 an ounce at 1,398.00. September Comex silver prices were last down $0.17 at $15.165 an ounce.

The just-released June U.S. jobs report from the Labor Department saw the key non-farm payrolls number of the report up 224,000. The number was expected to be up 165,000. Wednesday’s weaker ADP number (up 102,000) had many thinking today’s non-farms number would be a downside miss. Today’s significant upside miss today likely increases the odds for no Federal Reserve interest rate cut in July.

Asian and European stock markets were mixed in quieter trading overnight. U.S. stock indexes are pointed toward modestly lower openings when the New York day session begins. Look for quieter trading activity in the U.S. after the initial reaction to the U.S. jobs report’s release. Many traders and investors are still celebrating the U.S. Independence Day holiday that was on Thursday.

The key “outside markets” today see Nymex crude oil prices weaker and trading around just below $57.00 a barrel. Meantime, the U.S. dollar index is higher in early U.S. trading. 

Other U.S. economic data due for release Friday includes the weekly USDA export sales report.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bulls still have the firm overall near-term technical advantage. A five-week-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in August futures above solid resistance at the June high of $1,442.90. Bears' next near-term downside price breakout objective is pushing August futures prices below solid technical support at this week’s low of $1,384.70. First resistance is seen at $1,410.00 and then at $1,420.00. First support is seen at today’s low of $1,396.80 and then at $1,390.00. Wyckoff's Market Rating: 7.0

Live 24 hours silver chart [ Kitco Inc. ]

September silver futures bulls have the slight overall near-term technical advantage. Prices are in a five-week-old uptrend on the daily bar chart, but just barely. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $16.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.70. First resistance is seen at the overnight high of $15.37 and then at this week’s high of $15.51. Next support is seen at this week’s low of $15.07 and then at $15.00. Wyckoff's Market Rating: 5.5.

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.