(Kitco News) - Gold prices are solidly higher and hit new record highs in early U.S. trading Friday, following a major U.S. economic report that came in weaker than market expectations. Silver futures prices hit a nine-week high. April gold was last up $21.30 at $2,187.50. May silver was last up $0.167 at $24.745.
Arguably the U.S. data point of the month saw the February employment situation report from the Labor Department show weaker internals even though the key non-farm jobs number came in at up 275,000 versus expectations for a rise of 198,000. The January NF payrolls number was revised down to a rise of 229,000, compared to the original rise of 353,000. Also, the unemployment rate rose to 3.9% from the January report reading of 3.7%. And the labor force worker participation rate was only 62.5%. All in all, the jobs report falls into the camp of the U.S. monetary policy doves, who want to see interest rates cut sooner rather than later.
The key outside markets today see the U.S. dollar index lower and hitting a five-week low following the downbeat U.S. jobs report. Nymex crude oil prices are weaker and trading around $78.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching 4.046%.
Asian and European stock markets were mixed in overnight trading. U.S. stock index futures are set to open firmer when the New York day session begins and are at or near record highs.
In overnight news, the Euro zone’s fourth-quarter GDP came in unrevised from the previous estimate, at up 0.1%, year-on-year.
Other U.S. economic data due for release Friday includes the monthly USDA supply and demand report for grains.
Technically, the gold futures bulls have the solid overall near-term technical advantage and have momentum. A steep three-week-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in April futures above solid resistance at $2,250.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,100.00. First resistance is seen at today’s high of $2,190.80 and then at $2,200.00. First support is seen at the overnight low of $2,161.20 and then at $2,150.00. Wyckoff's Market Rating: 9.0.
The silver bulls have the overall near-term technical advantage and have momentum. Silver bulls' next upside price objective is closing May futures prices above solid technical resistance at $26.00. The next downside price
objective for the bears is closing prices below solid support at $23.50. First resistance is seen at today’s high of $24.85 and then at $25.00. Next support is seen at today’s low of $24.47 and then at Thursday’s low of $24.225. Wyckoff's Market Rating: 6.5.
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