(Kitco News) - Gold and silver prices are trading not far from unchanged levels on the day in midday U.S. trading Thursday. Some more mild profit-taking following gains posted earlier this week was met by bulls buying the dips to lift prices back to near steady levels. The shorter-term traders have likely mostly moved to the sidelines ahead of the U.S. employment report on Friday. April gold was last up $0.80 at $2,925.20. May silver prices were last up $0.136 at $33.27.
The U.S. data point of the week comes with Friday morning’s employment report for February from the Labor Department. The key non-farm payrolls number is expected to come in up 170,000, compared to a rise of 143,000 in the January report.
U.S. stock indexes are solidly lower at midday. Risk aversion is elevated again today, amid the specter of a tit-for-tat game with tariffs by major countries that could spin the global economy into a recession. Said David Morrison of Trade Nation in an email dispatch today: “President Trump has called everyone’s bluff and has said he’s prepared to take some pain to get what he wants. Tariffs may have been the trigger for the latest downturn, but they aren’t the only story. Speculation is growing over the possibility that a U.S. recession could start this year. GDP growth forecasts have been downgraded sharply, while inflation remains well above the Fed’s 2% target. Recent economic data releases have disappointed, most notably consumer confidence, retail sales and weekly jobless claims.”
In other news, the European Central Bank cut its main interest rate by 0.25%, as expected.
The key outside markets today see the U.S. dollar index weaker and hit another four-month low. Nymex crude oil futures prices are slightly down and trading around $66.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.30%.
Technically, April gold futures bulls have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the contract high of $2,974.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at last week’s low of $2,844.10. First resistance is seen at this week’s high of $2,941.30 and then at $2,950.00. First support is seen at $2,900.00 and then at Tuesday’s low of $2,892.50. Wyckoff's Market Rating: 8.0.
May 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 the February high of $34.56. The next downside price objective for the bears is closing prices below solid support at $31.00. First resistance is seen at $33.50 and then at $34.00. Next support is seen at Wednesday’s low of $32.395 and then at $32.00. Wyckoff's Market Rating: 5.5.
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