Gold, Silver See Some Price Pressure After U.S. Jobs Data

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Sep 04, 2020 10:33 NY TimeKitco 10AM Silver Fix

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Kitco News, Fri Sep. 4th, 2020) – Gold and silver prices are modestly down in the wake of a U.S. jobs report whose numbers were mostly close to market expectations. October gold futures were last down $2.00 at $1,927.90. December Comex silver prices were last down $0.08 at $26.81 an ounce.

The just-released U.S. employment situation report for August from the Labor Department, showed non-farm payrolls rise by 1.37 million and an employment rate of 8.4%. The non-farm number was in line with forecasts, but the unemployment rate was a bit lower than expected, which put some downside pressure on the precious metals. Traders and investors are generally deeming this report as upbeat for a U.S. economy that continues to recover from the Covid-19 lockdowns seen in late spring/early summer.

Global stock markets were mixed overnight, with European indexes mostly up and Asian indexes mostly down. The U.S. stock indexes are pointed toward mixed openings when the New York day session begins. The Nasdaq and S&P 500 hit record highs Wednesday and saw big downside corrections Thursday that unnerved stock traders and investors. The months of September and October can be extra turbulent for stock and financial markets. A big sell off in the U.S. stock market again today could support the safe-haven gold and silver markets, but that’s not a guarantee, as those metals did not get any support from Thursday’s big sell offs in the indexes.

The important outside markets today see Nymex crude oil prices firmer and trading around $41.50 a barrel. The U.S. dollar index is a bit firmer today. The yield on the U.S. Treasury 10-year note is trading around 0.65% today.

There is no other U.S. economic data due for release Friday. U.S. markets are closed Monday for the Labor Day holiday and the unofficial end of summer.

Technically, the gold bulls still have the firm overall near-term technical advantage, amid recent choppy trading. Prices are still in an uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at this week’s high of $1,992.50. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at the overnight high of $1,948.80 and then at Wednesday’s high of $1,972.40. First support is seen at this week’s low of $1,919.70 and then at $1,901.40. Wyckoff’s Market Rating: 7.0

December silver futures bulls have the firm overall near-term technical advantage. Prices are still in an overall price uptrend on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the August high of $30.19 an ounce. The next downside price objective for the bears is closing prices below solid support at the August low of $23.80. First resistance is seen at $27.50 and then at $27.89. Next support is seen at the overnight low of $26.52 and then at $26.00. 

Posted by :

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com