Gold posts solid price gains after negative US jobs report

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(Kitco News) – Gold prices are solidly higher and hit a two-week high at the start of US trading on Friday after a weak US jobs report for the second consecutive month. December gold futures were last up $ 13.70 to $ 1,772.80. December’s Comex Silver was up $ 0.222 to $ 22.89 an ounce.

The US employment report just released by the Labor Department on Friday morning – arguably the most important US data point of the month – saw the number of key non-farm jobs increase by 194,000, this which was a glaring shortfall from the forecast of 500,000 in September. , and follows a gain of 235,000 in August. The two months saw downside failures from consensus forecast. Some prognosticators are already saying that weaker-than-expected employment figures in August and September will prevent the Federal Reserve from cutting monetary policy anytime it wants.

Global stock markets were mixed in overnight trading. US stock indices show slightly higher openings when the New York day session begins. The bulls in the US stock index had a few good days this weekend, and Friday’s gains suggest the indexes have hit market lows. The risk appetite of traders and investors is more optimistic this weekend as the US Senate approved and passed a bill to extend the debt limit until December.

The main foreign markets are now seeing the US dollar index decline. Nymex crude oil futures are up and trading around $ 79.00 per barrel. Meanwhile, the yield on 10-year U.S. Treasuries currently stands at 1.586% and climbed above 1.6% overnight, the highest level since June.

Other US economic data due for release on Friday includes the monthly wholesale report.

Technically, December gold futures bears still have a slight overall technical advantage in the short term. However, a four week downtrend on the daily bar chart has now been reversed. The Bulls’ next bullish price target is to produce a close above the solid resistance at $ 1,800.00. The bears’ next short-term bearish price target is pushing futures prices under strong technical support to the September low of $ 1,721.10. The first resistance is seen at $ 1,788.40 and then $ 1,800.00. First support is seen at the overnight low of $ 1,753.60 and then this week’s low at $ 1,745.40. Wyckoff Market Score: 4.5

Silver bears have a strong overall short-term technical advantage, but prices hit a two-week high overnight. The next bullish price target for Silver Bulls is to close December futures prices above strong technical resistance at $ 24.00 an ounce. The next bearish price target for bears is to close price below strong support at $ 21.00. The first resistance is seen at $ 23.15, then at $ 23.50. Next support is seen at the overnight low at $ 22.435 and then at this week’s low at $ 22.185. Wyckoff market rating: 2.5.