(Kitco News) - Gold and silver prices are higher in early U.S. trading Friday, on the heels of a major U.S. economic report that came in close to market expectations and showed the U.S. economy is not running hot. August gold was last up $10.60 at $2,380.00. July silver was up $0.157 at $30.69.
The just-released U.S. data point of the day, if not the month, Friday saw
the U.S. employment situation report for June and its key non-farm payrolls number come in at up 206,000, which was very close to market expectations for up 200,000 jobs and compares to the downwardly revised May report’s rise of 218,000. The overall unemployment rate up-ticked by 0.1%, to 4.1%. This report leans slightly into the camp of the U.S. monetary policy doves, who want to see the Federal Reserve cut U.S. interest rates sooner rather than later.
Asian and European stock indexes were mixed to weaker overnight. U.S.
stock indexes are pointed toward slightly firmer openings when the New
York day session begins, after the S&P 500 and Nasdaq stock indexes hit
record highs overnight.
The U.K. held general elections Thursday. Neil Roarty, analyst with Stocklytics, said this morning in an email dispatch: “There’s been a positive, albeit muted, reaction from the markets to Labour’s landslide election victory. We’ve known for some time that Keir Starmer was likely to be taking the keys to 10 Downing Street, so the result had been broadly priced in already. Still, the FTSE 100, which added almost one percent on polling day, is up again in early trading Friday. The British pound is also holding steady. In fact, it’s up on the year versus the dollar--something no other major currency can say for 2024. With inflation relatively in check and a huge majority in parliament, it gives Starmer a strong mandate.
Labour was careful not to over-promise during the campaign. For now, the markets appear to be reacting positively to the prospect of a period of stability after the volatile later years of Tory rule.”
The key outside markets today see the U.S. dollar index lower and hitting
a three-week low. Nymex crude oil prices are near steady and trading
around $83.75 a barrel. The benchmark 10-year U.S. Treasury note yield is
presently 4.30%.
Technically, August gold bulls have the overall near-term technical
advantage. Bulls’ next upside price objective is to produce a close above
solid resistance at the June high of $2,406.70. Bears' next near-term
downside price objective is pushing futures prices below solid technical
support at $2,300.00. First resistance is seen at $2,382.60 and then at
$2,400.00. First support is seen at the overnight low of $2,359.00 and
then at $2,350.00. Wyckoff's Market Rating: 6.0.
September silver futures bulls have the overall near-term technical
advantage and have regained upside momentum. Silver bulls' next upside
price objective is closing prices above solid technical resistance at
$32.00. The next downside price objective for the bears is closing prices
below solid support at the June low of $28.90. First resistance is seen at
the overnight high of $31.08 and then at $31.225. Next support is seen at
the overnight low of $30.45 and then at $30.00. Wyckoff's Market Rating:
6.5.
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