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Mild price gains for gold, silver ahead of big U.S. data dump

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(Kitco News) - Gold and silver prices are up a bit in early U.S. trading Thursday, just ahead of a big batch of U.S. economic reports due for release. August gold was last up $2.70 at $1,984.70 and July silver was up $0.028 at $23.615.

A very heavy U.S. economic data slate Thursday includes the weekly jobless claims report, the Challenger job-cuts report, the ADP national employment report, revised productivity and costs, the U.S. manufacturing PMI, the global manufacturing PMI, domestic auto industry sales, monthly chain store sales, the ISM report on business manufacturing, construction spending and the weekly DOE liquid energy stocks report.

Asian and European stock markets were mostly higher overnight. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins. The marketplace has been assuaged by the U.S. House of Representatives handily passing the government debt-ceiling-extension deal reach between Republicans and Democrats. The measure now goes before the Senate and is expected to also pass.

Traders are now looking ahead to the Labor Department's employment situation report for May on Friday morning. The key non-farm payrolls number is seen coming in at up 190,000 compared to the April non-farm jobs number of up 253,000. The Wall Street Journal reported today the Fed is likely to pause in its interest-rate-hiking cycle at the June FOMC meeting, before raising rates again later this summer. That's a shift from the consensus marketplace belief just recently that the Fed would again raise rates at the June FOMC meeting. However, a “sizzling jobs report” on Friday would throw cold water on the Fed pause, said the Journal report.

In overnight news, the Euro zone May consumer price index came in at up 6.1%, year-on-year, compared to the April reading of up 7.0%. The May reading was lower than expected.

U.S. debt ceiling debate highlights U.S. fiscal imbalances and supports gold's push to $3,000 - CrossBorder Capital

The key outside markets today see the U.S. dollar index weaker. Nymex crude oil prices are near steady and are trading around $68.00 a barrel. Concerns about weaker global energy demand have hit crude oil this week. Meantime, the benchmark 10-year U.S. Treasury note yield is presently fetching 3.677%.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold futures bulls have the overall near-term technical advantage but have faded recently. Prices are trending down on the daily bar chart. Bulls' next upside price objective is to produce a close in August futures above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at this week's high of $1,993.10 and then at $2,000.00. First support is seen at the overnight low of $1,970.10 and then at $1,960.00. Wyckoff's Market Rating: 6.0

Live 24 hours silver chart [ Kitco Inc. ]

The silver bears have the overall near-term technical advantage. Prices are trending lower on the daily chart. Silver bulls' next upside price objective is closing July futures prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at this week's high of $23.735 and then at $24.00. Next support is seen at the overnight low of $23.335 and then at $23.00. Wyckoff's Market Rating: 4.0.

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.