(Kitco News) - Gold and silver prices are modestly higher in midday U.S. trading Wednesday, as both metals caught a bid following a weaker-than-expected reading on the U.S. jobs sector that tanked the U.S. dollar index. The recent downdraft in crude oil prices is somewhat squelching buying interest in the precious metals. December gold was last up $5.50 at $2,528.20 and December silver was up $0.299 at $28.235.
Today’s release of the U.S. jobs and labor turnover survey (JOLTS) showed July job openings decline to the lowest level since January of 2021. The report falls into the camp of the U.S. monetary policy doves, who want to see lower interest rates sooner from the Federal Reserve. The data point of the week, if not the month, is Friday morning’s monthly jobs report from the Labor Department.
Today, for the first time since 2022, the U.S. Treasury yield curve (twos and tens) “uninverted,” with the 10-year note moving slightly above the 2-year note. That’s an indication of the U.S. economy being healthier and avoiding a recession. The very latest readings this late morning, according to DowJones Newswires, is that the two yields were the same. Still, the trajectory of both seems to suggest a normalizing Treasury yield curve that would be good for the U.S. economy.
U.S. stock indexes are higher near midday, on a rebound from Tuesday’s strong selling pressure.
In other news, the Bank of Japan has warned it may need to raise interest rates again. That news boosted the yen against the U.S. dollar. It also prompted safe-haven buying of U.S. Treasuries on worries about the “yen carry” trade coming unraveled again.
The key outside markets today see the U.S. dollar index solidly lower after the JOLTS report. Nymex crude oil prices are weaker and trading around $69.75 a barrel. Crude overnight dropped to a nine-month low. The benchmark 10-year U.S. Treasury note is presently fetching around 3.71%.
Technically, December gold bulls have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $2,600.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,475.00. First resistance is seen at this week’s high of $2,539.50 and then at $2,550.00. First support is seen at the overnight low of $2,502.70 and then at $2,500.00. Wyckoff's Market Rating: 7.5.
December silver futures bulls and bears are on a level overall near-term technical playing field. A price uptrend on the daily bar chart has been negated. Silver bulls' next upside price objective is closing prices above solid technical resistance at $30.00. The next downside price objective for the bears is closing prices below solid support at the August low of $26.885. First resistance is seen at $29.00 and then at this week’s high of $29.35. Next support is seen at this week’s low of $28.055 and then at $28.00. Wyckoff's Market Rating: 5.0.
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