(Kitco News) - Gold prices are just a bit firmer and silver modestly weaker in early U.S. trading Friday, following a major U.S. economic report that came in a bit weaker than expected. April gold was last up $2.20 at $2,929.30. May silver prices were last down $0.293 at $33.045.
The just-released U.S. data point of the week saw the employment report for February from the Labor Department and its non-farm payrolls number up 151,000, which is below the consensus forecast for a rise of 170,000, according to a Dow Jones Newswires survey, and compares to a revised rise of 125,000 in the January report. The unemployment rate was 4.1% versus and expected reading of 4.0% that was the same as the January report. The gold and silver markets showed little reaction to the jobs data, but the U.S. dollar index sold off further and U.S. bond yields dipped.
Asian and European stock markets were mostly lower overnight. U.S. stock indexes are pointed to firmer openings when the New York day session begins, on corrective bounces after hitting multi-month lows Thursday. Reads a Wall Street Journal headline today: “Trade stress slams U.S. stocks.”
In overnight news, yields on Japanese government bonds rose to levels last seen during the financial crisis of 2008. There is speculation the Bank of Japan may soon raise interest rates again. Meantime, German bond yields are on the rise Germany’s announcement of its increased borrowing and spending plans.
Broker SP Angel reports the People’s Bank of China is keeping the Chinese yuan stable despite trade war volatility, with a weaker U.S. dollar boosting Chinese buying power in the international market. The yuan rose to its highest level since November this week, as the Chinese government reiterated its 5% GDP growth target.
Fed Chairman Powell speaks today at midday to a monetary conference in New York.
The key outside markets today see the U.S. dollar index weaker and hit another four-month low. Nymex crude oil futures prices are firmer and trading around $67.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.232%.
Other U.S. economic data due for release Friday includes consumer credit.
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 this week’s high of $33.38 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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