Make Kitco Your Homepage

Gold price down following stronger-than-expected U.S. jobs report

Kitco News

Editor note Get all the essential market news and expert opinions in one place with our daily newsletter. Receive a comprehensive recap of the day's top stories directly to your inbox. Sign up here!

(Kitco News) - Comex gold futures prices are lower and have extended overnight losses following a U.S. economic report that came in better than market expectations and falls into the camp of the Federal Reserve monetary policy hawks. Profit-taking by the shorter-term futures traders is featured to end the trading week, after Comex gold futures prices hit a record high of $2,085.40 Thursday. June gold was last down $24.60 at $2,031.80 and July silver was down $0.172 at $26.03.

The just-released April U.S. jobs report from the Labor Department showed a rise in non-farm payrolls of 253,000. The key number was forecast to come in at up 180,000. However, the March jobs report saw non-farm payrolls revised down, at up 165,000 versus the initial number of up 248,000. The U.S. unemployment rate in April was 3.4% versus expectations for a rate of 3.6% and a rate of 3.5% in the March report.

Global stock markets were mixed to firmer overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins, following losses posted every day this week. Risk aversion remains elevated to end the trading week, mainly on concerns over the health of the U.S. banking sector—especially regional banks. Reports said the U.S. government is investigating potential trader manipulation of banking stocks.

Gold market remains bullish after hitting record highs above $2,080, but volatility could increase

The key outside markets today see the U.S. dollar index slightly higher. Nymex crude oil prices are higher and trading around $70.50 a barrel. Meantime, the benchmark 10-year U.S. Treasury note yield is presently fetching around 3.5%.

Other U.S. economic data due for release Friday includes the global services PMI and consumer credit.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold futures bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at $2,100.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the April low of $1,965.90. First resistance is seen at $2,050.00 and then at the April high of $2,063.40. First support is seen at today’s low of $2,027.60 and then at $2,016.00. Wyckoff's Market Rating: 8.5

Live 24 hours silver chart [ Kitco Inc. ]

The silver bulls have the solid overall near-term technical advantage. Silver bulls' next upside price objective is closing July futures prices above solid technical resistance at $27.50. The next downside price objective for the bears is closing prices below solid support at $24.50. First resistance is seen at the April high of $26.435 and then at $26.75. Next support is seen at Thursday’s low of $25.70 and then at $25.355. Wyckoff's Market Rating: 8.0.

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.