(Kitco News) - Gold and silver prices are firmer in early U.S. trading Thursday, with gold notching a two-week high overnight, just ahead of important U.S. and European Union economic data. August gold was last up $3.30 at $2,378.80. July silver was last up $0.357 at $30.43.
Investors and traders are awaiting the conclusion of Thursday’s European Central Bank (ECB) meeting. The expectation is that the ECB will get ahead of the central-bank pack and cut its main interest rate by 25 basis points.
The U.S. data point of the week, if not the month, comes with Friday’s May employment situation report from the Labor Department. The key non-farm payrolls number is seen coming in at up 178,000 versus the April report showing a gain of 175,000 jobs. Wednesday’s ADP national employment report for May was a miss to the downside on jobs growth. Reads a Wall Street Journal headline today: “The once red-hot labor market shows signs of cooling.”
Asian and European stock indexes were mixed to firmer overnight. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins.
The key outside markets today see the U.S. dollar index slightly higher. Nymex crude oil prices are modestly up and trading around $74.50 a barrel. The benchmark 10-year U.S. Treasury note yield is presently at 4.297%.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the Challenger job-cuts report, the international trade report, revised productivity and costs, and monthly chain store sales.
Technically, August gold bulls have the overall near-term technical advantage. However, a bearish double-top reversal pattern has formed on the daily bar chart to suggest a near-term market top is in place. Bulls’ next upside price objective is to produce a close above solid resistance at the contract high of $2,477.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the May low of $2,308.70. First resistance is seen at the overnight high of $2,394.60 and then at $2,400.00. First support is seen at the overnight low of $2,373.40 and then at $2,350.00. Wyckoff's Market Rating: 6.5.
July silver futures bulls have the overall near-term technical advantage. A four-week-old uptrend on the daily bar chart has been negated to suggest a near-term market top is in place. Silver bulls' next upside price objective is closing prices above solid technical resistance at the May high of $32.75. The next downside price objective for the bears is closing prices below solid support at $29.00. First resistance is seen at the overnight high of $30.755 and then at $31.00. Next support is seen at $30.00 and then at this week’s low of $29.505. Wyckoff's Market Rating: 6.5.
(Hey! My “Markets Front Burner” weekly email report is my best writing and analysis, I think, because I get to look ahead at the marketplace and do some market price forecasting. Plus, I’ll throw in an educational feature to move you up the ladder of trading/investing success. And it’s free! Email me at jim@jimwyckoff.com and I’ll add your email address to my Front Burner list.)
