Gold Down Amid Strong U.S. Jobs Report, Little Risk Aversion

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(Kitco News) - Gold pricesaremoderately lower in early U.S. trading Friday. Some price pressure is comingfrom a surprisingly strong U.S. jobs report that was just released. Also,better risk appetite in the marketplace at present is stymieing the safe-havengold and silver bulls. April Comex gold futures were last down $3.40 an ounceat $1,318.20. May Comex silver was last down $0.02 at $16.47 an ounce.

Themost important U.S. economic data point of the month showed the employmentsituation report for February from the Labor Department's key non-farm payrollsnumber up a much-larger-than-expected 313,000. The consensus forecast was up205,000. The February unemployment rate was 4.1% Average U.S. hourly earningscrept up 0.1% from January and were up 2.6%, year-on-year. The wage numberswere less than the marketplace expected, suggesting tamer inflation. The jobsreport falls squarely into the camp of the U.S. monetary policy hawks, who wantto see interest rates rise sooner.

TheU.S. dollar index initially rallied on the news, which also put downsidepressure on the precious metals markets. However, the USDX backed off itshighs. But the U.S. stock indexes are in rally mode after the strong jobsreport, and that's a negative for the competing asset class of precious metals.

Reportsovernight said a meeting between U.S. President Donald Trump and North Koreanleader Kim Jong Un is set for May. However, many are skeptical such a meetingwill actually take place. Still, the news adds to the upbeat investor riskappetite presently in the world marketplace, which is bearish for gold andsilver.

Inother overnight news, China and European Union officials lashed out at the newU.S. trade tariffs signed into law by Trump on Thursday.

OtherU.S. economic data due for release Friday includes the monthly wholesale tradereport.

Technically,Aprilgold futures bulls and bears are on a level overall near-term technicalplaying field. Gold bulls' next upside near-term price breakout objective is toproduce a close above solid technical resistance at $1,350.00. Bears' nextnear-term downside price breakout objective is pushing prices below solidtechnical support at $1,300.00. First resistance is seen at today's high of $1,322.80and then at $1,330.00. First support is seen at today's low of $1,313.40 andthen at $1,309.00. Wyckoff's Market Rating: 5.0

Maysilver futures bears have the overall near-term technical advantage. Silverbulls' next upside price breakout objective is closing prices above solidtechnical resistance at the February high of $17.04 an ounce. The next downsideprice breakout objective for the bears is closing prices below solid support at$16.00. First resistance is seen at $16.60 and then at $16.75. Next support isseen at today's low of $16.33 and then at the March low of $16.16. Wyckoff'sMarket Rating: 4.0.

By Jim Wyckoff

For Kitco News

Follow @jimwyckoffjwyckoff@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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