(Kitco News) - Gold prices are slightly lower in early U.S. trading Friday and are losing altitude following a key U.S. economic report that showed no major surprises and was overall upbeat. Silver prices are up and hit another 13-year high. August gold was last down $4.00 at $3,370.00. July silver prices were last up $0.45 at $36.23.
Arguably the most important U.S. data point of the month sees the just-released May employment situation report from the Labor Department and its key non-farm payrolls number up 139,000. The number was seen up 125,000 jobs, compared to a revised rise of 147,000 in the April report. The overall unemployment rate was unchanged at 4.2%. The big downside miss in Wednesday’s ADP national employment report had many market participants pensive, wondering if Friday’s jobs report would also be a downside miss. Not so.
Asian and European stocks were mixed overnight. U.S. stock indexes are pointed to higher openings today in New York and rallied in pre-opening trading after the upbeat jobs report. The rallying stock indexes are a negative for the safe-haven metals.
In other news, the U.S. and China will resume trade talks after “very positive” Trump/Xi call on Thursday. The leaders are seeking to de-escalate tariff tensions amid mounting global economic uncertainty. Trump signaled openness to further engagement with China despite ongoing disputes over tariffs, technology restrictions, and market access. “I would say we have a deal, and we’re going to just make sure that everybody understands what the deal is,” he added.
The key outside markets today see the U.S. dollar index firmer. Nymex crude oil futures prices are near steady and trading around $63.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.456%.
Other U.S. economic data due for release Friday includes the consumer credit report.
Technically, August 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 May high of $3,477.30. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,300.00. First resistance is seen at $3,400.00 and then at this week’s high of $3,427.70. First support is seen at Thursday’s low of $3,362.30 and then at $3,350.00. Wyckoff's Market Rating: 8.0.
July silver futures bulls have the strong overall near-term technical advantage after seeing a bullish upside “breakout” from a trading range on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $37.50. The next downside price objective for the bears is closing prices below solid support at $34.00. First resistance is seen at the overnight high of $36.46 and then at $36.75. Next support is seen at the overnight low of $35.755 and then at $35.00. Wyckoff's Market Rating: 8.5
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