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Gold prices up ahead of expected grim U.S. jobless claims data

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(Kitco News) - Gold prices are trading modestly up in early U.S. trading Thursday, on some safe-haven demand and some chart-based buying. Traders and investors are squarely focused on Thursday morning’s weekly jobless claims report, which is expected to show an enormous and record-setting rise of 1.5 million claims, or more, in the latest reporting week. This weekly report will be the first one to more fully reflect a U.S. economy that has been severely crippled by the closure of most retail stores across the nation due to the coronavirus outbreak that continues to spread rapidly in the U.S. The jobless claims report will very likely be a grim testament to the damage being inflicted on the world’s largest economy. Such could put more downside price pressure on the U.S. stock indexes during the day session Thursday. April gold futures were last up $6.40 an ounce at $1,640.00. May Comex silver prices were last down $0.118 at $14.755 an ounce.

Global stock markets were mostly lower in overnight trading. U.S. stock index futures are presently pointed toward lower openings when the New York electronic day session begins. The equity markets are ignoring the overnight news the U.S. Senate has passed a $2.2 trillion financial aid package for U.S. businesses and citizens negatively impacted by the Covid-19 outbreak. The measure was expected to be passed and now moves to the House of Representatives for a vote.

The important outside markets today see Nymex crude oil prices down and trading around $23.85  a barrel. The U.S. is pressuring Saudi Arabia to hold off on producing more oil that is helping to cripple the U.S. economy. It’s doubtful the Saudis will listen as they hate the U.S. fracking industry. The U.S. dollar index is again solidly lower as greenback bulls are fading fast after the USDX hit a 17-year high earlier this week. The 10-year U.S. Treasury note yield is trading around 0.81% Thursday morning.

Other U.S. economic data due for release Thursday includes the third estimate of four-quarter GDP, advance economic indicators, and the Kansas City Fed manufacturing survey.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bulls have the overall near-term technical advantage with this week’s big gains. Bulls’ next upside price objective is to produce a close in April futures above solid resistance at the March high of $1,704.30. Bears' next near-term downside price objective is pushing futures prices below solid technical support at Tuesday’s low of $1,560.50. First resistance is seen at today’s high of $1,645.70 and then at $1,650.00. First support is seen at $1,625.00 and then at the overnight low of $1,611.00. Wyckoff's Market Rating: 6.5

Live 24 hours silver chart [ Kitco Inc. ]

May silver futures bulls and bears are on a level overall near-term technical playing field as week’s gains have produced a bullish V-bottom reversal pattern on the daily chart, to suggest a market bottom is in place. Silver bulls' next upside price 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 the March low of $11.64. First resistance is seen at this week’s high of $14.93 and then at $15.00. Next support is seen at $14.205 and then at $14.00. Wyckoff's Market Rating: 5.0.

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.