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(Kitco News) – Gold and silver prices have risen higher, hitting a four-week high in early US trading Friday after a weak US employment report for August. However, both metals have pulled back from their daily highs recorded immediately after the report. The Department of Labor’s employment report showed that the most important component of non-farm payrolls increased by only 235,000, compared with an increase of 720,000 expected by the market. The unemployment rate was 5.2% in August – in line with expectations and compares to the 5.4% reported in the July report. The July non-farm payrolls have been revised up significantly from an already strong number, which may be one reason gold and silver prices have returned to their daily highs. October gold futures last rose $ 11.80 to $ 1,821.20. Comex silver last rose $ 0.327 to $ 24.24 an ounce in December.
Global equity markets were mixed overnight. The US stock indices are pointing to slightly higher opens as the New York day session begins, with S&P 500 and Nasdaq futures at or near record highs.
On the nightly news Thursday, Democratic Senator Joe Manchin called for a “strategic break” on President Biden’s $ 3.5 trillion tax and spending package. In a comment for the Wall Street Journal, Manchin said that rising inflation and rising public debt require a slow approach and a “significantly” smaller plan. Manchin is an important voice in the equally divided Senate.
According to reports, China will begin trading in yuan-denominated commodity futures contracts, open to foreign traders and investors. China’s State Council announced on Friday that it would offer more commodity futures, including ship contracts. China has gradually opened up futures trading on its commodity futures with the aim of gaining more global control over commodity prices. Foreign investors currently have access to the Chinese futures markets, including crude oil, iron ore, rubber and bonded copper. The official statement announced plans to accelerate rollout for foreign traders by establishing an “international commodity futures market with prices and settlement in Renminbi.”
The US dollar index rose slightly today in the most important foreign markets. Nymex crude oil futures prices are firmer, trading at around $ 70.25 a barrel. Meanwhile, the benchmark 10-year US Treasury bond yield is 1.3%.
Other US economic data slated for release on Friday includes the US Purchasing Managers Index for Services (PMI), ISM Business Services Report, and Global Services PMI.
Tech-wise, the October gold futures bulls have the overall short-term technical advantage. Prices are in a three week old uptrend on the daily bar chart. The bulls’ next price target is to hit a close above solid resistance at the July high of $ 1,836.20. Bears’ next short-term target price is to push futures prices below solid technical support at $ 1,775.00. Initial resistance is seen at today’s high of $ 1,830.20 and then $ 1,836.20. Initial support is seen at the overnight low of $ 1,809.00 and then the weekly low of $ 1,801.30. Wyckoff’s market valuation: 6.5
The silver bears have a slight overall technical advantage, but the bulls are making headway and working on an uptrend on the daily chart. The silver bulls’ next price target is the December futures closing price above solid technical resistance at $ 25.00 an ounce. The next downside target for the bears is to close below the solid support at $ 23.00. Initial resistance will be seen at today’s high of $ 24.44 and then $ 24.75. The next support is seen at $ 24.00 and then the weekly low of $ 23.775. Wyckoff’s market valuation: 4.5.
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