Make Kitco Your Homepage

Gold prices can’t hold slight gains seen after downside miss on U.S. jobs number

Kitco News

Editor's Note: 2020 is expected to be another year of significant uncertainty and turmoil. But the question is what asset will emerge the victor when the dust settles from the global trade war, Brexit, recession threats, negative bond yields. It's a showdown of global proportions, so don't miss all our exclusive coverage on how these factors could impact your 2020 investment decisions.

(Kitco News) - Gold prices are weaker and silver prices are steady to slightly higher in early U.S. futures trading Friday. The metals initially erased modest overnight losses just after a mild downside miss on the non-farm payrolls component of the U.S. employment report for December. February gold futures were last down $4.80 an ounce at 1,549.70. March Comex silver prices were last up $0.014 at $17.95 an ounce.

Traders and investors are back to examining economic data and other market fundamentals, including the just-released December U.S. employment situation report from the Labor Department. The key non-farm payrolls number came in at up 145,000, which was slightly lower than the expected rise of 160,000. Wednesday’s stronger-than-expected ADP national employment report had some leaning toward a stronger non-farm jobs number. This report falls mildly into the camp of the U.S. monetary policy doves, who want to see lower interest rates.

Asian stock markets were mixed to firmer overnight and European shares were mostly up. U.S. stock indexes are pointed toward firmer openings and at more record highs when the New York day session begins. After hitting a nasty speed bump a few days ago, the stock market bulls are right back in business and trader/investor risk appetite is robust.

The U.S. and Iran have backed away from further military confrontation—at least for now. And the world’s two largest economies are set to sign a partial trade agreement next week, with Chinese trade officials traveling to Washington, D.C. to do the signing. Most reckon the deal will pave the way for better global economic growth in 2020.

The key outside markets today see crude oil prices slightly lower and trading around $59.50 a barrel. The U.S. dollar index is modestly down early today, after the downside miss on the non-farm jobs number.

Other U.S. economic data due for release includes the monthly wholesale trade report.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bulls have the firm overall near-term technical advantage, but have faded this week. A price uptrend is still in place on the daily chart. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at $1,590.90. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,530.00. First resistance is seen at Thursday’s high of $1,562.40 and then at the September high of $1,571.70. First support is seen at the overnight low of $1,546.70 and then at this week’s low of $1,541.00. Wyckoff's Market Rating: 7.0

Live 24 hours silver chart [ Kitco Inc. ]

March silver futures bulls still have the overall near-term technical advantage but a four-week-old price uptrend line is now in jeopardy. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at this week’s high of $18.895 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.50. First resistance is seen at Thursday’s high of $18.225 and then at $18.55. Next support is seen at this week’s low of $17.815 and then at $17.50. Wyckoff's Market Rating: 6.0.

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.