(Kitco News) - Gold prices are modestly higher and silver slightly up in early U.S. trading Friday, following an important U.S. economic report that should allow the Federal Reserve to lower interest rates. February gold was last up $11.30 at $2,659.50 and March silver was up $0.134 at $31.68.
The most important U.S. data point of the week, if not the month, is today’s monthly employment situation report for November from the Labor Department. The key non-farm payrolls number came in at up 227,000, which was modestly above the 200,000 rise expected. The unemployment rate was unchanged from last month, at 4.2%. October non-farm payrolls were revised up 36,000, to 255,000. This report falls mostly into the “Goldilocks” camp, which means the data was not too hot and not too cold. That suggests the Fed can go ahead and cut interest rates at its December meeting. The marketplace now sees a 90% chance the Fed cuts its main rate by 0.25% at the December meeting.
Asian and European stock markets were mixed overnight. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins. The U.S. indexes are not far below this week’s record highs.
In other news, disruptive French lawmaker Marine Le Pen said France can overcome its government collapse to deliver a budget in “a matter of weeks” as long as the next prime minister is willing to narrow the deficit at a slower pace. The markets have so far not seen much reaction to the sacking of the French prime minister over a domestic budget dispute.
The European Central Bank will cut interest rates more rapidly than previously expected, a Bloomberg survey shows.
The key outside markets today see the U.S. dollar index lower. Nymex crude oil futures prices are modestly down and trading around $67.50 a barrel. OPEC and its allies again delayed increases in oil production at this week’s cartel meeting. The yield on the benchmark 10-year U.S. Treasury note is presently 4.164% and down a bit after the U.S. jobs report.
Other U.S. economic data due for release Friday includes the University of Michigan consumer survey and consumer credit.
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 today’s low of $2,635.60. 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 the overnight low of $31.39 and then at $31.00. Wyckoff's Market Rating: 5.5.
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