(Kitco News) - Gold and silver prices are higher near midday Monday, supported by notions of lower U.S. interest rates coming in September, following a downbeat U.S. economic report released last Friday that fell squarely into the camp of the monetary policy doves. December gold was last up $22.90 at $3,422.50. September silver prices were last up $0.406 at $37.325.
President Trump late Friday fired the head of the agency that produces the monthly jobs figures after the Friday morning jobs report showed hiring slowed in July and was much weaker in May and June than previously reported. The U.S. stock market sold off Friday following the dour U.S. jobs data, which changed the trajectory of the economic discussion to one of a Fed rate cut now being likely at the September FOMC meeting. Trump said he will announce a new Federal Reserve governor and a new BLS jobs data statistician in the coming days.
U.S. stock indexes are solidly higher at midday, which as a competing asset class with the safe-haven metals is somewhat tempering gains in gold and silver.
Nymex crude oil futures are weaker after the OPEC-plus decision to raise its collective output. A lower U.S. dollar index today is also working in favor of the precious metals market bulls. Nymex crude oil futures were last trading around $66.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.25%.
Technically, December gold futures bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the July high of $3,509.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,300.00. First resistance is seen at $3,450.00 and then at $3,480.00. First support is seen at the overnight low of $3,397.90 and then at $3,350.00. Wyckoff's Market Rating: 6.5.
September silver futures bulls have the overall near-term technical advantage but are fading fast. A price uptrend on the daily bar chart has been negated. Silver bulls' next upside price objective is closing prices above solid technical resistance at this week’s high of $38.51. The next downside price objective for the bears is closing prices below solid support at $35.00. First resistance is seen at $37.73 and then at $38.00. Next support is seen at last week’s low of $36.28 and then at $36.00. Wyckoff's Market Rating: 6.5.
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