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(Kitco News) - Gold prices are up just a bit in early U.S. trading Friday, with silver prices just slightly down, in the wake of a U.S. jobs report for July that came in close to market expectations. It appears the takeaway from the report is that it suggests the U.S. economy is not running too hot. December gold was last up $1.00 at $1,969.80 and September silver was down $0.192 at $23.51. Both markets hit four-week lows overnight.
The U.S. data point of the week saw the U.S. employment situation report for July and its key non-farm payrolls number come in at up 187,00 jobs, versus the 200,000 jobs gain that was the consensus forecast, and compares to a revised rise of 185,000 in the June report. The U.S. unemployment rate came in at 3.5% in July versus 3.6% in June. The marketplace showed no significant initial reactions to the jobs data.
Asian and European stock markets were mixed in overnight trading. U.S. stock indexes are pointed to slightly higher openings when the New York day session begins. Trader and investor appetite has been dinged this week by the Fitch downgrade of U.S. government debt and by downbeat quarterly earnings from Apple, reported after the close Thursday.
A feature in the marketplace this week is the sell off in the U.S. Treasury market (prices falling and yields rising). Treasury yields have hit their highest levels of the year this week. It could be that the downgrade of the U.S. government's credit rating played a part in the bond market rout. However, yields have been steadily rising the past few months, but did accelerate this week. Some market watchers worry that inflationary pressures could heat up again, while at the same time the U.S. economy sees its highly anticipated (at least by some) slowdown. That scenario raises the specter of the dreaded “stagflation,” which means problematic inflation and slowing economic growth. That scenario is an outlier right now but cannot be ruled out.
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| No soft landing means 'we take out the all-time highs on gold by year-end' while equity collapse could drag Bitcoin below 15k - Gareth Soloway |
The key outside markets today see the U.S. dollar index near steady. Nymex crude oil prices are firmer and trading around $82.00 a barrel. Meantime, the benchmark 10-year U.S. Treasury note yield is presently fetching 4.2%.
![Live 24 hours gold chart [Kitco Inc.]](/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, the gold futures bulls and bears are on a level overall near-term technical playing field. Bulls' next upside price objective is to produce a close in December futures above solid resistance at the July high of $2,028.60. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the June low of $1,939.20. First resistance is seen at $1,975.00 and then at Wednesday's high of $1,992.20. First support is seen at the overnight low of $1,954.50 and then at $1,950.00. Wyckoff's Market Rating: 5.0
![Live 24 hours silver chart [ Kitco Inc. ]](/images/live/silver.gif)
The silver bulls and bears are also on a level overall near-term technical playing field. Prices are starting to trend lower on the daily bar chart. Silver bulls' next upside price objective is closing September futures prices above solid technical resistance at the July high of $25.475. The next downside price objective for the bears is closing prices below solid support at the June low of $22.34. First resistance is seen at $24.00 and then at $24.50. Next support is seen at the overnight low of $23.275 and then at $23.30. Wyckoff's Market Rating: 5.0.
