(Kitco News) - Gold prices are moderately lower in midday U.S. trading Wednesday, but have moved well up from solid overnight lows following some weaker U.S. economic data released this morning. Silver prices are solidly down. This week’s big drop in crude oil prices is also a negative for the gold and silver markets. June gold was last down $15.20 at $3,318.60. May silver prices were last down $0.67 at $32.605.
Today’s U.S. ADP national employment report for April was a big downside miss, showing a gain of 62,000 jobs versus expectations for up 120,000. Also, the first-quarter U.S. GDP number came in at down 0.3% versus expectations for a rise of 0.4%, quarter-on-quarter. These numbers fall into the camp of the monetary policy doves, who want the Federal Reserve to lower U.S. interest rates sooner rather than later.
U.S. stock indexes are solidly lower at midday, on the downbeat U.S. economic data. Friday comes the all-important monthly U.S. jobs report from the Labor Department. That may well be the most important U.S. data point so far this year.
In other news, China’s economy is starting to feel the effects of the trade war with the U.S. China’s new export orders plummeted in April to the lowest levels since the pandemic, with overall manufacturing activity the weakest in more than a year. Dow Jones Newswires reports, “The sharp pullback shows Trump’s eye-watering tariffs on Chinese imports are starting to squeeze the engine room of China’s economy, piling pressure on Beijing to boost its stimulus efforts to shore up growth.”
The key outside markets today and see the U.S. dollar index slightly higher. Nymex crude oil futures prices are sharply down and trading around $58.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.2%.
Technically, June 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 $3,509.90. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,200.00. First resistance is seen at the overnight high of $3,337.60 and then at this week’s high of $3,363.80. First support is seen at $3,300.00 and then at last week’s low of $3,270.80. Wyckoff's Market Rating: 7.0.
May silver futures bulls have the firm overall near-term technical advantage. Prices are in an uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $35.00. The next downside price objective for the bears is closing prices below solid support at $32.00. First resistance is seen at $33.00 and then at last week’s high of $33.69. Next support is seen at today’s low of $32.135 and then at $32.00. Wyckoff's Market Rating: 6.0.
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