Markets

A.M. Kitco Metals Roundup: Comex Gold, Silver Lower Early as Traders Await Key U.S. Jobs Data

(Kitco News) - Comex gold and silver futures prices are trading weaker in early U.S. dealings Friday, as traders await the much-anticipated U.S. employment report due out at 8:30 a.m. EDT. Profit-taking pressure, position evening and lower crude oil prices are putting some initial downside price pressure on the precious metals early Friday. August gold last traded down $3.50 an ounce at $1,529.20. Spot gold last traded up $1.10 an ounce at $1,540.50. July Comex silver last traded down $0.787 at $35.415 an ounce.

Recent weak U.S. economic data has unnerved the market place and traders are looking to Friday morning's jobs report to either confirm or refute that data. Look for a more active trading affair in the metals and other markets in the wake of the employment data. Forecasters have ratcheted down their expectations for the key non-farm payrolls growth number in the jobs report. Forecasts are calling for a rise of around 150,000 in non-farm jobs in May.

There are reports the European Union and International Monetary Fund have reached a debt relief deal with Greece. That has somewhat supported the Euro currency late this week. However, even if an aid package for Greece is agreed upon, it's just a bandaid placed over a very serious wound. The EU sovereign debt crisis will continue to erode confidence and credibility in the European Union.

The U.S. dollar index is trading near steady Friday morning, ahead of the jobs report. The U.S. dollar index bulls have faded and bears have downside near-term technical momentum. The dollar index is in a posture where it could head back down and retest the recent 2.5-year low in the near term. The greenback has not been a beneficiary of the recent safe-haven moves by investors.

Crude oil prices are trading weaker early Friday. Crude oil bulls still have the overall near-term technical advantage, but trading has turned choppy. The recent weak U.S. economic data is bearish for crude. Crude oil has been and will continue to be a leader in the raw commodity market sector.

Other U.S. economic data due for release Friday includes ISM non-manufacturing index and the global services PMI.

The London A.M. gold fixing is $1,531.00 versus the previous P.M. fixing of $1,539.50.

Technically, August Comex gold futures bulls still have the solid overall near-term and longer-term technical advantage. A four-month-old uptrend is in place on the daily bar chart and a 10-year-old uptrend is in place on the longer-term monthly chart. Bulls' next near-term upside technical objective is to produce a close above solid technical resistance at the all-time high of $1,577.70. Bears' next near-term downside price objective is closing prices below solid technical support at $1,515.60. First resistance is seen at the overnight high of $1,536.20 and then at Thursday's high of $1,545.50. First support is seen at the overnight low of $1,524.90 and then at this week's low of $1,520.40.

July Comex silver futures bulls still have faded badly this week and need to show fresh power soon. A bearish weekly low close on Friday would produce fresh near-term technical damage in silver. The next downside price breakout objective for the bears is closing prices below solid technical support at $34.00. Bulls' next upside price objective is producing a close above solid technical resistance at last week's high of $38.845 an ounce. First resistance is seen at $36.00 and then at the overnight high of $36.33. Next support is seen at $35.00 and then at $34.50.

My Twitter followers now number in the thousands! 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 of Kitco News; jwyckoff@kitco.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