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Gold price rallies after downbeat U.S. non-farm jobs growth

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(Kitco News) - Gold prices are moderately higher in early U.S. trading Friday and got a boost after the key component of the monthly U.S. employment report did not meet market expectations. A rally in the crude oil market this morning is also supportive for the metals markets. February gold was last up $11.60 at $1,774.50 and March Comex silver was last up $0.194 at $22.505 an ounce.

The just-released U.S. employment situation report for November from the Labor Department showed the key non-farm payrolls number up 210,000, which was a big miss to the downside. Traders had expected it to come in at up 573,000 compared to a rise of 531,000 in October. Importantly, however, other internals of the jobs report were more upbeat, including the unemployment rate of 4.2% versus 4.6% in October.

The U.S. stock indexes rallied on the jobs news. Global stock markets were mixed to firmer in overnight trading. It's been a choppy trading week for the U.S. stock indexes, but they are now in near-term price downtrends, to suggest market tops are in place. There remains marketplace uncertainty regarding the new Omicron strain of the coronavirus. The variant has prompted many countries to impose travel restrictions. Look for continued wobbly trading in the stock market until much more is known about Omicron.

Gold price moving higher following disappointing 210K job gains in November

The key "outside markets" today see Nymex crude oil prices higher and trading around $68.00 a barrel, after hitting a three-month low of $64.43 on Tuesday. The OPEC cartel agreed Thursday to pump more oil starting in January, but left the door open to change its mind if the global economic conditions change. The U.S. dollar index is slightly higher. Meantime, the yield on the U.S. Treasury 10-year note is presently fetching 1.427%.

Other U.S. economic data due for release Friday includes the U.S. services PMI, the ISM report on business services, the global services PMI, and manufacturers' shipments and inventories.

Live 24 hours gold chart [Kitco Inc.]

Technically, February gold futures bulls have the slight overall near-term technical advantage but need to show fresh power soon to keep it. A two-month-old uptrend on the daily bar chart is still alive, but just barely. Bulls' next upside price objective is to produce a close above solid resistance at last week's high of $1,853.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the November low of $1,761.00. First resistance is seen at Thursday's high of $1,785.20 and then at Wednesday's high of $1,795.70. First support is seen at this week's low of $1,762.20 and then at the November low of $1,761.00. Wyckoff's Market Rating: 5.5

Live 24 hours silver chart [ Kitco Inc. ]

The March silver bears have the firm overall near-term technical advantage. Prices have been trending down for nearly three weeks. Silver bulls' next upside price objective is closing December futures prices above solid technical resistance at $24.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the September low of $21.46. First resistance is seen at $22.70 and then at $23.00. Next support is seen at this week's low of $22.185 and then at $22.00. Wyckoff's Market Rating: 2.5.

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.