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Gold price sells off following upbeat U.S. jobs report

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(Kitco News) - Gold and silver prices are down in early U.S. trading Friday, in the wake of a U.S. jobs report for September that was not a big surprise to the marketplace, but did show good internals that do not strongly suggest the U.S. economy is headed for a recession. December gold was last down $18.80 at $1,703.00 and December silver was down $0.37 at $20.30.

Arguably the most important U.S. data point of the week, if not the month saw Friday morning’s employment situation report for September from the Labor Department put the key non-farm jobs number at up 263,000, which was just below the expected rise of 275,000. The August report showed a non-farm jobs rise of 315,000. The U.S. unemployment rate dropped to 3.5% in September, which was lower than expected. The August jobless rate was 3.7%. Average hourly earnings were up 4.98% from last year at the same time. The marketplace reckons the jobs report did nothing to dissuade the Federal Reserve from its aggressively tight monetary policy.

Global stock markets were mixed overnight. U.S. stock indexes are pointed to lower openings when the New York day session begins. Traders and investors are still leaning toward risk-off attitudes to end the trading week. Worries about global inflation and economic recession and the Russia-Ukraine war continue to curb risk appetite.

The short-squeeze won't last, silver price to end the year lower warns Metals Focus

The key outside markets today see the U.S. dollar index higher, rallying on the jobs report after being weaker overnight. Nymex crude oil prices are higher and trading around $89.50 a barrel. Meantime, the yield on the 10-year U.S. Treasury note rose a bit after the jobs data and is fetching 3.9%.   

Other U.S. economic data due for release Friday includes monthly wholesale trade data and consumer credit. A couple of Federal Reserve officials are also scheduled to speak today.

Live 24 hours gold chart [Kitco Inc.]

Technically, the December gold futures bears have the overall near-term technical advantage. However, recent gains begin to suggest a market bottom is in place. A downtrend on the daily bar chart has stalled out. Bulls’ next upside price objective is to produce a close above solid resistance at $1,780.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the September low of $1,622.20. First resistance is seen at the overnight high of $1,722.80 and then at this week’s high of $1,738.70. First support is seen at $1,690.00 and then at $1,680.00. Wyckoff's Market Rating: 3.0

Live 24 hours silver chart [ Kitco Inc. ]

September silver futures bulls have the slight overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $22.00. The next downside price objective for the bears is closing prices below solid support at $19.00. First resistance is seen at $21.00 and then at this week’s high of $21.31. Next support is seen at $20.00 and then at $19.60. 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.