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Gold price a bit firmer as Powell, U.S. jobs report in focus

Kitco News

(Kitco News) - Gold prices are slightly higher and silver near steady in early U.S. trading in quieter trading Monday. Traders and investors are awaiting two major U.S. data points of the week. April gold was last down $2.10 at $1,856.70 and May silver was down $0.013 at $21.225.

Focus is on Fed Chairman Jerome Powell’s testimony on U.S. monetary policy to Senate and House committees on Tuesday and Wednesday. Then comes the February U.S. employment situation report from the Labor Department on Friday morning. The key non-farm payrolls component of the report is expected to show a rise of 225,000 jobs, following a mammoth rise of 517,000 in the January report.

Global stock markets were mixed overnight. U.S. stock indexes are pointed mixed openings when the New York day session begins, following solid gains and technically bullish weekly high closes posted last Friday.

Central banks continue to scoop up gold in 2023 as gold price holds the mid-$1,800 level

In overnight news, China set a 5% target for its economic growth in 2023, which is the lowest forecast in over 25 years.

The key outside markets this morning see the U.S. dollar index firmer. Nymex crude oil futures prices are down and trading around $78.50 a barrel. The yield on the benchmark U.S. 10-year Treasury note is presently fetching 3.991%--down a bit after pushing above 4.0% last week.

U.S. economic data due for release Monday includes manufacturers’ shipments and inventories.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold futures bulls have regained the slight overall near-term technical advantage. A downtrend on the daily bar chart has been negated. Bulls’ next upside price objective is to produce a close in April futures above solid resistance at $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at last week’s high of $1,864.40 and then at $1,875.00. First support is seen at $1,850.00 and then at $1,842.00. Wyckoff's Market Rating: 5.5

Live 24 hours silver chart [ Kitco Inc. ]

The silver bears have the overall near-term technical advantage. Prices are in a steep five-week-old downtrend on the daily bar chart. Silver bulls' next upside price objective is closing May futures prices above solid technical resistance at $22.25. The next downside price objective for the bears is closing prices below solid support at $19.00. First resistance is seen at $21.50 and then at $21.75. Next support is seen at $21.00 and then at this week’s low of $20.76. Wyckoff's Market Rating: 4.0.

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