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Gold price rallies after soft U.S. jobs report

Kitco News

(Kitco News) - Gold and silver prices are higher in early U.S. trading Friday, boosted by a downbeat U.S. economic report that should assuage Federal Reserve Board members who are worried about a U.S. economy that is running too hot. December gold was last up $14.30 at $2,008.00. December silver was last up $0.244 at $23.08.

This morning's just-released U.S. employment situation report for October saw the key non-farm payrolls number come in at up 150,000 versus market expectations for a rise of 170,000 and compares to a revised rise of 297,000 non-farm jobs in the September report. Today's report falls into the camp of the U.S. monetary policy doves, who want the Federal Reserve to stop raising interest rates.

The U.S. dollar index weakened and U.S. Treasury yields dipped following the jobs report. The U.S. stock indexes pushed higher on the news, to extend this week's solid gains in the indexes. Asian and European stocks were mostly higher overnight.

The key outside markets today see the U.S. dollar index solidly lower. Nymex crude oil prices are firmer and trading around $83.50 a barrel. The yield on the benchmark U.S. Treasury 10-year note is presently fetching 4.572%.

The Fed's monetary policy is irrelevant and won't stop gold's push above $2,000 - abrdn's Robert Minter

Other U.S. economic data due for release Friday includes the U.S. services purchasing managers index (PMI) and the ISM report on business services.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold futures bulls have the near-term technical advantage. Prices are trending higher on the daily bar chart. Bulls' next upside price objective is to produce a close in December futures above solid resistance at $2,050.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,950.00. First resistance is seen at the October high of $2,019.70 and then at the July high of $2,028.60. First support is seen at the overnight low of $1,989.30 and then at this week's low of $1,978.20. Wyckoff's Market Rating: 6.0

Live 24 hours silver chart [ Kitco Inc. ]

The silver bulls have the slight overall near-term technical advantage. However, an uptrend on the daily bar chart has stalled out. Silver bulls' next upside price objective is closing December futures prices above solid technical resistance at $24.05. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at $23.25 and then at $23.50. Next support is seen at last week's low of $22.565 and then at $22.25. Wyckoff's Market Rating: 5.5.

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