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Gold, silver boosted by friendly data points in U.S., Euro zone

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(Kitco News) - Gold and silver prices are firmer in midday U.S. trading Thursday and took back overnight losses amid some friendly U.S. and Euro zone economic data out today. August gold futures were last up $3.30 at $1,806.60 and September Comex silver was last up $0.135 at $25.39 an ounce.

This morning's U.S. jobless claims report showed a decline of 51,000 in claims, to 419,000, which was still higher than the 350,000 in new claims expected. The report falls into the camp of the U.S. monetary policy doves who want to see the Federal Reserve hold off on tightening policy.

Traders Thursday also focused on the regular monetary policy meeting of the European Central Bank. The ECB left its monetary policy unchanged and said inflation is still running well below the bank's target rate. The ECB said it will keep monetary policy easy and maybe easier until the target inflation rate of 2.0% is reached. The ECB said it will also step up its bond buying program. ECB President Lagarde said that inflationary pressures have recently subsided.

The above two data sets leaned friendly for metals market prices.

Global stock markets were mostly higher overnight. The U.S. stock indexes are mixed at midday. Upbeat U.S. corporate earnings reports this week have buoyed investor hopes.

The key outside markets today see the U.S. dollar index firmer after hitting a 3.5-month high on Wednesday. Nymex crude oil futures prices are firmer and trading around $71.30 a barrel. Oil prices have made a very good recovery this week after falling to a five-week low on Monday. The yield on the U.S. Treasury 10-year note is presently fetching 1.29%.

Live 24 hours gold chart [Kitco Inc.]

Technically, gold futures bulls have lost their slight overall near-term technical advantage as  a price uptrend on the daily bar chart has been negated. Bulls' next upside price objective is to produce a close above solid resistance at the July high of $1,835.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,775.00. First resistance is seen at today's high of $1,808.40 and then at Wednesday's high of $1,814.40. First support is seen at today's low of $1,791.90 and then at $1,785.00. Wyckoff's Market Rating: 5.0.

Live 24 hours silver chart [ Kitco Inc. ]

The silver bears have the firm overall near-term technical advantage as prices have this week seen a bearish downside "breakout" from a sideways trading range. Silver bulls' next upside price objective is closing September futures prices above solid technical resistance at $26.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the March low of $23.825. First resistance is seen at $25.58 and then at $25.75. Next support is seen at $25.00 and then at this week's low of $24.79. Wyckoff's Market Rating: 3.0.

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.