(Kitco News) - Gold and silver prices are lower in midday U.S. trading Tuesday, with silver leading to the downside. Profit taking from the shorter-term futures traders is featured today, following recent price rebounds. The precious metals markets are also seeing some position evening ahead of the U.S. jobs report on Wednesday and some U.S. inflation data late this week. April gold was last down $10.00 at $5,069.00. March silver prices were down $0.514 at $81.75.
The January U.S. jobs report on Wednesday and the consumer price index, due Friday, are unusually close together on the calendar after the partial federal government shutdown delayed each by a few days. “The employment report will be even more substantive than usual. In addition to the monthly payrolls and unemployment numbers, each January release includes an annual revision to the jobs count. The so-called benchmark update is expected to reveal a notable markdown to payrolls growth in the year through March 2025,” Bloomberg reported. As for the regular monthly figures, economists predict payrolls rose 69,000 in January. The unemployment rate is seen holding at 4.4%, near a four-year high. In the CPI data Friday, economists will look for more evidence that inflation is on a downward trend after previous reports were complicated by last year’s record-long government shutdown. Forecasters expect an underlying metric of inflation — which excludes food and energy costs — to rise at the slowest annual pace since early 2021.
The key outside markets today see the U.S. dollar slightly down, with crude oil prices slightly down and trading around $64.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.145 percent.
Note: The gold market operates through two primary pricing mechanisms. The first is the spot market, which quotes prices for on-the-spot purchase and immediate delivery. The second is the futures market, which sets prices for delivery at a future date. Due to year-end positioning market liquidity, the December gold futures contract is currently the most actively traded on the CME.
Technically, April gold futures bulls’ next upside price objective is to produce a close above solid resistance at $5,250.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the February low of $4,423.20. First resistance is seen at last week’s high of $5,113.90 and then at $5,200.00. First support is seen at this week’s low of $4,988.60 and then at $4,900.00. Wyckoff's Market Rating: 6.5.
March silver futures bulls see the next upside price objective is closing prices above solid technical resistance at last week’s high of $92.015. The next downside price objective for the bears is closing prices below solid support at $60.00. First resistance is seen at the overnight high of $83.745 and then at $85.00. Next support is seen at $79.00 and then at $77.50. Wyckoff's Market Rating: 5.0.
(Hey! My “Markets Front Burner” weekly email report is my best writing and analysis, I think, because I get to look ahead at the marketplace and do some market price forecasting. Plus, I’ll throw in an educational feature to move you up the ladder of trading/investing success. And it’s free! Sign up here; it’s real easy. https://www.kitco.com/services)
I’ll throw in an educational feature to move you up the ladder of trading/investing success. And it’s free! Sign up here; it’s real easy. https://www.kitco.com/services
