(Kitco News) - Gold and silver prices are near steady in early U.S. trading Thursday, as the precious metals markets are pausing ahead of an important U.S. economic report out Friday. Price action in gold and silver markets has turned sideways and choppy the past week. February gold was last down $0.80 at $2,675.30 and March silver was down $0.04 at $31.875.
It’s a busy U.S. economic data week, including the key monthly employment situation report from the Labor Department on Friday. Non-farm payrolls likely rose by around 200,000 in November, according to a Bloomberg survey.
Asian and European stock markets were mixed overnight. U.S. stock indexes are pointed toward slightly lower openings and record highs when the New York day session begins, after setting record highs Wednesday. The U.S. indexes are enjoying a seasonal “Santa Claus rally.”
Fed Chairman Jay Powell spoke in New York Wednesday. He said the U.S. economy is in “remarkably good shape,” adding downside risks for labor market seem to have come down. Markets are presently expecting a 75% chance the Fed will cut its main rate by 0.25% at the FOMC meeting next week, up from around 66% last week.
French President Emmanuel Macron is looking for a new prime minister after Michel Barnier Wednesday afternoon lost a no-confidence vote over a budget dispute. “Macron’s plan to remake the country is in ruins. Markets are holding steady for now,” said a Bloomberg report.
OPEC-plus is meeting today to discuss a further delay to its plans to increase crude oil production. So far, OPEC-plus members have been unable to raise output for fear of sending oil prices even lower. Reads a Dow Jones Newswires headline today: “Oil surplus, spare capacity to pressure prices in 2025.”
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.
Officials in China claim to have found a “super-giant” gold mine. Broker SP Angel says the deposit is reported to stretch to 3,000 meters below the surface and lies underneath an existing gold mine. Officials estimate the deposit could contain 1,100 metric tons of gold. “So far the geologists have detected more than 40 gold veins containing around 330 metric tons of gold at around a 2,000-meter depth,” said SP Angel.
The key outside markets today see the U.S. dollar index weaker. Nymex crude oil futures prices are modestly down and trading around $68.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.20%.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the Challenger job-cuts report, the international trade report, and the monthly retail chain store sales index.
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 this week’s high of $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 $2,650.00 and then at this week’s low of $2,644.50. 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 $31.50 and then at $31.00. Wyckoff's Market Rating: 5.5
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