Gold prices are firmer and silver near steady in midday U.S. trading Thursday. The metals are seeing some “outside market” support as this week’s rally in the U.S. dollar index has stalled out. However, gains in the precious metals are being limited by lower crude oil prices and an up-tick in U.S. Treasury yields today. February gold was last up $8.20 at $2,051.00. March silver was last up $0.003 at $23.165.
Today’s U.S. ADP jobs report for December showed a larger-than-expected rise of 164,000, versus expectations for a gain of 130,000. Markets showed little reaction to the news. Traders are looking ahead to Friday’s U.S. employment situation report for December. The key non-farm jobs number in the report is expected to come in up 170,000 and compares to a rise of 199,000 seen in the November report.
Asian and European stock markets were mixed overnight. U.S. stock index futures are mixed near midday, following two sessions of solid losses. Risk appetite in the marketplace is not robust this week, amid heightened tensions in the Middle East. However, that has at least not yet translated into solid safe-haven demand for gold and silver.
The key outside markets today see the U.S. dollar index weaker on a corrective pullback following two days of solid gains. Nymex crude oil prices are lower and trading around $71.25 a barrel. Prices are in a downtrend on the daily bar chart. Meantime, the yield on the benchmark U.S. Treasury 10-year note is presently fetching 3.989%.
Technically, February gold futures bulls have the firm overall near-term technical advantage. Prices are in a three-month-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $2,100.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,000.00. First resistance is seen at today’s high of $2,058.10 and then at Wednesday’s high of $2,074.30. First support is seen at today’s low of $2,043.30 and then at this week’s low of $2,038.30. Wyckoff's Market Rating: 7.0.
March silver futures prices hit a three-week low today. The silver bears have the overall near-term technical advantage. A three-month-old uptrend on the daily bar chart has been negated. Silver bulls' next upside price objective is closing prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at the November low of $22.26. First resistance is seen at $23.50 and then at $24.00. Next support is seen at today’s low of $23.88 and then at the December low of $22.785. Wyckoff's Market Rating: 4.0.
March N.Y. copper closed down 280 points at 383.35 cents today. Prices closed nearer the session low today and scored a bearish “outside day” down. The copper bulls have the overall near-term technical advantage but are fading. Prices are still in a choppy, 2.5-month-old uptrend on the daily bar chart, but now just barely. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the July high of 404.45 cents. The next downside price objective for the bears is closing prices below solid technical support at the December low of 372.90 cents. First resistance is seen at today’s high of 388.45 cents and then at this week’s high of 391.20 cents. First support is seen at today’s low of 381.75 cents and then at 380.00 cents. Wyckoff's Market Rating: 6.0.
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