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(Kitco News) – Gold and silver prices are solidly lower in early US trading on Friday, following a surprisingly strong jobs report that may force the Federal Reserve to be even more aggressive in ‘tightening of its monetary policy. The US dollar index and US Treasury yields jumped on the jobs news, which in turn helped lower gold and silver prices. October gold futures were last down $21.70 at $1,774.70. September Comex silver futures were down $0.507 at $19.615 an ounce.
This morning’s US jobs report for July showed a very strong 528,000 increase in non-farm payrolls employment growth. A gain of about 260,000 was expected. The June jobs report showed an increase of 372,000 nonfarm payrolls. The overall unemployment rate in July fell to 3.5% from 3.6% in June. After today’s strong jobs numbers, “the Fed’s dovish pivot is not going to happen,” one market commentator told Bloomberg Radio.
Global equity markets were flat to slightly higher overnight. US stock indexes are headed for lower opens heading into the New York session, selling off after strong non-farm payrolls.
The market is still somewhat uneasy amid escalating tensions between the US and China, the world’s two largest economies, following US House Speaker Nancy Pelosi’s visit to Taiwan this week China is conducting aggressive military exercises around Taiwan and also announced sanctions against Nancy Pelosi and her family. US Secretary of State Blinken said China’s military exercises near Taiwan are a worrying escalation.
Key external markets today see Nymex crude prices almost flat and trading around $88.50 a barrel. Crude oil hit a 4.5-month low on Thursday. The US dollar index is sharply higher in early US trading and made a big move higher after the jobs report. The yield on the 10-year US Treasury note is around 2.85%.
Other US economic data due on Friday includes the consumer credit report.
Technically, October gold futures bears have the overall short-term technical advantage. However, there is still a nascent price uptrend on the daily bar chart to suggest that there is a market bottom. The next upside price objective for the bulls is to produce a close above the solid resistance at $1,850.00. The next short-term downside price objective for bones is pushing futures prices below solid technical support at the July low of $1,686.30. First resistance is seen at this week’s high of $1,801.00 and then at $1,825.00. First support is seen at Thursday’s low of $1,769.50 and then at this week’s low of $1,759.70. Wyckoff Market Rating: 3.0
Bears in September silver futures have the overall short-term technical advantage. However, recent price gains suggest that there is a market bottom. The next bullish price target for silver bulls is closing prices above solid technical resistance at $21.00. The next downside price objective for the bears is to close prices below the solid support at $19.00. First resistance is seen at $20.00 and then at this week’s high of $20.51. The next support is seen at $19.40 and then $19.00. Wyckoff Market Rating: 3.0.
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