(Kitco News) - Gold and silver prices are weaker near midday Thursday, following a U.S. employment report for September that was stronger than expected and leaned hawkish on U.S. monetary policy. Solid gains in global stock markets today also limited buying interest in the safe-haven metals. December gold was last down $15.30 at $4,067.00. December silver prices were down $0.279 at $50.545.
The U.S. Bureau of Labor Statistics released its September monthly jobs report today and it showed a rise of 119,000 non-farm jobs, which was much higher than the expected gain of 50,000. However, the overall unemployment rate up-ticked to 4.4% from 4.3% in the August report. Also the August jobs report showed a revised fall of 4,000 versus the initially reported rise of 22,000 non-farm jobs. The BLS on Wednesday said it is cancelling its October jobs report due to lack of sufficient data collected. Some October jobs data will be rolled into a report to be published after the Fed’s December FOMC decision on Dec. 10, said the bureau, prompting traders to scale back expectations for a quarter-point Fed reduction at that time.
Wednesday afternoon’s release of the minutes from the late-October meeting of the Federal Open Market Committee (FOMC) also leaned a bit hawkish, showing many Fed officials believe it would likely be appropriate to keep U.S. interest rates steady for the remainder of 2025. “Many participants suggested that, under their economic outlooks, it would likely be appropriate to keep the target range unchanged for the rest of the year,” the minutes said. However, the minutes said “several participants” said another cut “could well be appropriate in December if the economy evolved about as they expected” before the next meeting. The minutes underscored the uncertainty around the likelihood of a Fed rate cut next month, given ongoing divisions in the committee over whether inflation or unemployment represents a greater threat to the U.S. economy.
Global stock markets and U.S. stock indexes posted solid gains today, following Nvidia Corp. on Wednesday afternoon delivering a surprisingly strong revenue forecast. The stock market rallies were also a negative for the safe-haven metals.
The key outside markets today see the U.S. dollar index slightly lower. Crude oil prices are slightly down and trading around $59.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.1%.
Technically, December gold futures bulls’ next upside price objective is to produce a close above solid resistance at the record high of $4,398.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $4,000.00. First resistance is seen at the overnight high of $4,109.60 and then at this week’s high of $4,134.30. First support is seen at the overnight low of $4,034.00 and then at $4,000.00. Wyckoff's Market Rating: 6.5.
December silver futures bulls have the firm overall near-term technical advantage and their next upside price objective is closing prices above solid technical resistance at the record high of $54.415. The next downside price objective for the bears is closing prices below solid support at $47.50. First resistance is seen at the overnight high of $51.57 and then at $52.00. Next support is seen at $50.00 and then at this week’s low of $49.115. Wyckoff's Market Rating: 7.5
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