Markets

A.M. Kitco Metals Roundup: Comex Gold Sharply Higher amid Lower Stock Markets; U.S. Jobs Data Awaited

(Kitco News) -Comex December gold futures are trading sharply higher in early U.S. trading Friday. It's presently "risk off" in the market place as the U.S. and European stock markets are trading lower as the European Union debt crisis is once again drifting to the top of the heap, regarding factors impacting the markets. The sharp gains in gold could also be attributed to traders expected a very weak U.S. non-farm payrolls figure, due out shortly. December gold last traded up $32.60 at $1,861.80 an ounce. Spot gold last traded up $33.70 an ounce at $1,859.50. December Comex silver last traded up $1.048 at $42.58 an ounce. Traders are keenly awaiting Friday morning's U.S. jobs report, which could be pivotal for many markets. A very weak non-farm payrolls growth figure would likely pressure in the U.S. stock market and boost gold prices . A stronger-than-expected growth figure would likely boost the U.S. stock indexes and put downside pressure on the precious metals. The average trade guess on the non-farm payrolls figure is a rise of 80,000 workers in August. While there are no major fresh developments on the European Union debt crisis front, there continues to be negotiations among EU leaders, with the underlying theme that there is still not firm agreement on specific near-term actions to be taken. This comes amid the broader thought among many that the entire EU debt situation is a big, ugly mess that can't be cleared up without some major structural changes in the European Union, itself. The U.S. dollar index is trading near steady Friday. Prices hit a fresh three-week high Thursday. Short covering in a bear market was featured in the index. While the greenback bears still have the overall near-term technical advantage, a technically bullish weekly high close on Friday would provide the index bulls with fresh upside near-term technical momentum to begin to suggest a near-term market low is in place. However, fundamentally, notions of a fresh U.S. monetary stimulus package from the Federal Reserve in the coming weeks or few months will likely limit the upside for the dollar index. The U.S. and European stock markets will continue to be the key gauge of worldwide investor risk appetite in the market place. On days of better investor risk appetite (higher stocks) buying interest in gold will likely be limited. On days of shrinking investor risk appetite (lower stocks) gold will likely see more buying interest. Besides the jobs report, there is no other U.S. economic data due for release Friday. The London A.M. gold fixing was $1,854.00 versus the previous P.M. fixing of $1,821.00. Technically, December gold futures bulls' have solid upside momentum on their side, have gained more upside momentum Friday morning, and their next near-term upside technical objective is to produce a close above solid technical resistance at the all-time high of $1,917.90. Bears' next near-term downside price objective is closing prices below psychological support at $1,800.00. First resistance is seen at $1,875.00 and then at $1,900.00. First support is seen at $1,850.00 and then at Friday's low of $1,826.90. . December silver futures bulls have the solid overall near-term technical advantage and gained more upside momentum on Friday. Prices are in a choppy, two-month-old uptrend on the daily bar chart. Bulls' next upside price objective is producing a close above strong technical resistance at the August high of $44.295 an ounce. The next downside price breakout objective for the bears is closing prices below psychological support at $40.00. First resistance is seen at the overnight high of $42.73 and then at $43.00. Next support is seen at $42.00 and then at the overnight low of $41.535. Follow me on Twitter to immediately get the very latest market developments. If you are not on board, then you are not getting key analysis and perspective as fast or as often as you could! Follow me on Twitter to get my very timely intra-day and after-hours briefs on precious metals price action. The precious markets will remain very active. If you want market analysis fast, and in after-hours trading, then follow my up-to-the-second precious metals market perspective on Twitter. It's free, too. My account is @jimwyckoff . By Jim Wyckoff contributing to Kitco News; jim@jimwyckoff.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

Commodities

Latest Markets Videos