(Kitco News) - Gold and silver prices are posting good gains in early U.S. trading Thursday. Some downbeat U.S. economic data Wednesday has the precious metals bulls thinking the Federal Reserve will lean more dovish on U.S. monetary policy. December gold was last up $20.80 at $2,546.80 and December silver was up $0.498 at $28.665.
The precious metals are boosted today on dovish Federal Reserve hopes following a disappointing job openings and labor turnover report (JOLTS) Wednesday. Also, The Federal Reserve beige book, out Wednesday afternoon, suggested a slowing U.S. economy, showing a theme of weakening demand for hiring and rising potential of layoffs. Reads a Barrons headline today: “Stock markets must heed recession alarm bells; it’s not just a September scare.” Presently, the odds for a 0.5% Fed rate cut this month have risen to 41% as of Wednesday versus 30% on Monday.
Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed to mixed openings when the New York day session begins.
The U.S. data point of the week is Friday morning’s monthly employment situation report from the Labor Department. The key non-farm payrolls number is seen coming in at up 160,000 for August compared to a rise of 114,000 in the July report.
The key outside markets today see the U.S. dollar index weaker. Nymex crude oil prices are slightly firmer and trading around $69.50 a barrel. Crude overnight dropped to a nine-month low Wednesday. The benchmark 10-year U.S. Treasury note is presently fetching 3.765%.
U.S. economic data due out Thursday includes the weekly jobless claims report, the ADP jobs report, the Challenger job-cuts report, revised productivity and costs, the ISM report on business, the global services PMI, the monthly retail chain store sales index and the weekly DOE liquid energy stocks report.
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 $2,550.00 and then at the contract high of $2,570.40. First support is seen at the overnight low of $2,523.70 and then at this week’s low of $2,502.70. Wyckoff's Market Rating: 8.0.
December silver futures bulls and bears are on a level overall near-term technical playing field. 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 this week’s high of $29.35 and then at $29.50. Next support is seen at the overnight low of $28.535 and then at this week’s low of $28.055. Wyckoff's Market Rating: 5.0.
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