Gold price weakens, then stabilizes after upbeat U.S. jobs report

(Kitco News, Fri. Nov. 5th, 2021) – Gold and silver prices were lower and hit daily lows in the immediate aftermath of a U.S. jobs report that was a bit more upbeat than market expectations. However, prices have since stabilized and are trading near steady. December gold was last up $1.40 at $1,795.20 and December Comex silver was last up $0.006 at $23.92 an ounce.

The U.S. employment situation report for October showed a rise of 531,000 in non-farm payrolls. The key component was expected to show a rise of 450,000 and compares to a gain of 194,000 in the September report. The U.S. unemployment rate came in at 4.6% versus 4.8% in the September report.

It appears the gold and silver market traders are now more focused on bullish aspects of rising inflation, and less on the bearish aspects of a tighter U.S. monetary policy.

Global stock markets were mixed in overnight trading. The U.S. stock indexes are pointed to higher openings when the New York day session begins. The U.S. indexes hit record highs again overnight. Traders and investors are generally in upbeat moods at present, as U.S. corporate earnings reports have been very positive. Risk appetite got another boost Friday morning when Pfizer reported its Covid-19 pill as 89% effective in reducing hospitalization and death.

The key outside markets today see the U.S. dollar index higher and near the high for the year. Nymex crude oil prices are higher and trading around $79.65 a barrel. The oil market bulls have become wobbly this week. Meantime, the 10-year U.S. Treasury note yield is presently fetching 1.532%.

Other U.S. economic data due for release Friday includes consumer credit.

Technically, December gold futures bulls and bears are on a level overall near-term technical playing field. Bulls’ next upside price objective is to produce a close above solid resistance at the October high of $1,815.50. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the September low of $1,721.10. First resistance is seen at the overnight high of $1,801.40 and then at this week’s high of $1,815.50. First support is seen at $1.780.00 and then at Thursday’s low of $1,769.30. Wyckoff’s Market Rating: 5.0

The silver bears have the slight overall near-term technical advantage. A two-week-old downtrend is in place on the daily bar chart. Silver bulls’ next upside price objective is closing December futures prices above solid technical resistance at $25.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $22.50. First resistance is seen at $24.00 and then at this week’s high of $24.175. Next support is seen at Thursday’s low of $23.485 and then at this week’s low of $23.045

Posted by :

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com