Price pressure on gold, silver after stronger U.S. jobs report

(Kitco News, Fri. Oct 4th, 2024) – Gold and silver prices are lower in early U.S. trading Friday, in the aftermath of a major U.S. economic report that came in stronger than expected and falls into the camp of the monetary policy hawks. December gold was last down $18.30 at $2,660.90 and December silver was down $0.419 at $32.045.

The just-released U.S. data point of the week, if not the month, sees the September U.S. employment situation report from the Labor Department report its key non-farm payrolls number up 254,000 compared to market expectations for a rise of around 150,000. The overall unemployment rate for September came in at 4.1%, slightly lower than expected. “This is a strong report,” said CNBC’s Ric Santelli. Today’s jobs data likely takes off the table any notions the Fed would cut its key interest rate by another 0.5% at one FOMC meeting.

Asian and European stock indexes were mixed overnight. China markets are closed for a holiday this week. U.S. stock indexes are pointed to higher openings when the New York day session begins. The U.S. stock index bulls are somewhat relieved the dockworkers strike has ended, at least for now.

There is still risk aversion in the general marketplace. Heading into an uncertain weekend, Israel continues its offensive in Lebanon and has vowed to retaliate against Iran’s missile attack this week. After a remark from President Biden Thursday, there is higher concern Israel may target Iran’s crude oil infrastructure, which would likely spike oil prices.

The key outside markets today see the U.S. dollar index solidly higher and rallied after the jobs report. Nymex crude oil prices are higher and trading around $74.00 a barrel. Oil has been boosted by the Middle East flare-up. The benchmark 10-year U.S. Treasury note yield is on the decline and is presently fetching 3.936% and up-ticked after the jobs report.

Technically, December gold bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $2,800.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,600.00. First resistance is seen at $2,675.00 and then at the overnight high of $2,687.70. First support is seen at $2,650.00 and then at this week’s low of $2,646.20.

December silver futures bulls have the firm overall near-term technical advantage. Prices are in a seven-week-old uptrend on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the May high of $33.50. The next downside price objective for the bears is closing prices below solid support at $30.00. First resistance is seen at this week’s high of $32.59 and then at $33.00. Next support is seen at Thursday’s low of $31.65 and then at this week’s low of $31.155.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com