(Kitco News) - Gold and silver prices are lower, with gold sharply down, in midday U.S. trading Thursday. The precious metals market bulls have faded and need a bullish catalyst to revive their spirits. Position evening ahead of an important U.S. economic report out Friday also likely prompted some selling interest. February gold was last down $26.50 at $2,649.70 and March silver was down $0.37 at $31.545.
The marketplace is awaiting the key monthly employment situation report from the Labor Department on Friday morning. Non-farm payrolls likely rose by around 200,000 in November, according to a Bloomberg survey. Fed Chairman Jay Powell spoke in New York Wednesday and said the U.S. economy is in “remarkably good shape,” adding downside risks for labor market seem to have come down. His comments spooked the precious metals market bulls a bit, as they wondered if Friday’s jobs report will be stronger than expected.
Bitcoin rose above $100,000 for the first time ever and is up 50% since the U.S. presidential election. The latest rally came after President-elect Trump selected Paul Atkins, a pro-crypto regulator, to head the US Securities and Exchange Commission. The big Bitcoin rally could also be pulling away investor money from the gold market. Powell on Wednesday implied gold and Bitcoin were competing asset classes.
The key outside markets today see the U.S. dollar index lower. Nymex crude oil futures prices are slightly down and trading around $68.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.25%.
Technically, February gold bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $2,748.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,600.00. First resistance is seen at this week’s high of $2,682.00 and then at $2,700.00. First support is seen at $2,629.70 and then at $2,600.00. Wyckoff's Market Rating: 6.0.
March silver futures bulls have the slight overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $32.50. The next downside price objective for the bears is closing prices below solid support at $30.00. First resistance is seen at this week’s high of $32.07 and then at $32.50. Next support is seen at $31.00 and then at $29.75. Wyckoff's Market Rating: 5.5
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