Gold prices push higher following tepid US jobs data

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(Kitco News) – U.S. trading Friday, and have moved overnight. A tepid U.S. employment report just released has breathed a new life in the safe-haven metals bulls, who have been on the defensive late his week. Bullish traders also stepped in to "buy the dips" in both gold and silver markets. December gold futures were last up $ 4.40 a year ago at 1.529.90. December Comex silver prices were last up $ 0.008 at $ 18.78 an ounce.

The just-released U.S. employment situation report for the Labor Department showed the key "non-farm" payrolls component of the 130,000 report, which is a downside miss from market expectations for a gain of 150,000. This report falls into the heart of the U.S. monetary policy, where the FOMC meets in less than two weeks. Thursday's ADP national employment report for August came in at up 195,000 jobs, which was significantly higher than the forecast of up to 140,000. That made today's jobs report even more surprisingly weak.

Asian and European stock markets were mostly higher overnight. U.S. stock indexes are pointed to higher when the New York day session begins. Trader and investor risk appetite has markedly improved this week, which has pushed the U.S. stock indexes back to their summertime highs.

Protesters are set to demonstrate in Hong Kong again this weekend, reports said. This week Hong Kong 's leader withdrew from the perspective of Hong Kong citizens to mainland China for criminal trials. Right now it appears doubtful the reversal of Hong Kong's leader on extradition will be enough to stop the civil unrest. Now, Hong Kong's leading stepping down. Importantly, the Fitch credit rating agency has just downgraded its main rating on Hong Kong.

The Brexit saga continues as the deadline for a U.K. deal with the European Union approaches. Prime Minister Boris Johnson wants to reach out to "soft" Brexit. He said Thursday he'd "rather be dead in a ditch" than extend Brexit negotiations. However, votes this week from Parliament appear to have defeated his "hard" Brexit stance. The matter continues to unsettle European markets.

China's central bank moved to recess its monetary policy Friday by lowering the reserve requirement ratio for banks.

The Euro zone second-quarter GDP on Friday was 1.2% in the first quarter, and was up 1.2%, year-on-year.

The key "outside markets" today see $ 55.35 a barrel. The U.S. dollar index is slightly weaker in early U.S. trading today.

There is no other U.S. economic data due for release Friday. Federal Reserve Chairman Jerome Powell delivers a speech in Zurich, Switzerland later Friday.

Technically, the gold bulls still have the firm overall near-term technical advantage. A three-month-old uptrend is in place on the daily bar chart. Bulls' next upside price is higher than $ 1,600.00. Bears is now $ 1,500.00. First resistance is at the high of $ 1,528.50 and then at 1,535.00. First support is at $ 1,510.70 and then at $ 1,500.00. Wyckoff's Market Rating: 7.0

December silver futures bulls still have the firm overall near-term technical advantage. Prices are in a three-month-old uptrend on the daily bar chart. Silver bulls' next upside price breakout is at $ 20.00 an ounce. The next downside price breakout for the bears is $ 17.64. First resistance is seen at $ 19.00 and then at $ 19.25. Next support is at $ 18.50 and then at $ 18.25. Wyckoff's Market Rating: 7.0.