Gold Gets Mild Lift From Slightly Downbeat U.S. Jobs Report

(Kitco News) - Gold prices areslightly up in early U.S. trading Friday, getting a modest boost from a U.S.employment report non-farm jobs number that was weaker than marketexpectations. However, a firmer U.S. dollar index is limiting the upside ingold and silver. June Comex gold futures were last up $2.50 an ounce at $1,315.00.July Comex silver was last up $0.038 at $16.485 an ounce.

Thejust-released April U.S. employment report from the Labor Department showed thekey non-farm payrolls number at up 164,000. The number was forecast to come inat up 195,000. However, the overall unemployment rate declined by 0.1%, to 3.9%.The marketplace is deeming the report a bit weaker than expected, but notenough to change the course of U.S. monetary policy.

Inother news, a highly anticipated U.S.-China trade meeting in China this weekhas ended. A statement from China said some agreements were made, but thereremain “significant disagreements over certain issues.” The two sides agreed tocontinue to negotiate. The U.S. has not yet released a statement following themeetings, which were held to try to avert a trade war between the world’s twolargest economies.

Theoutside markets today see the U.S. dollar index trading firmer but down fromthe overnight high, and still not far below this week’s 4.5-month high.Meantime, Nymex crude oil prices are higher and trading just below $69.00 abarrel.

OtherU.S. economic data due for release Friday includes the global servicespurchasing managers’ index (PMI).

Technically,Junegold bulls and bears are on a level overall near-term technical playingfield. Gold bulls' next upside near-term price breakout objective is to producea close above solid technical resistance at last week’s high of $1,337.60.Bears' next near-term downside price breakout objective is pushing prices belowsolid technical support at $1,300.00. First resistance is seen at Thursday’shigh of $1,319.00 and then at $1,325.00. First support is seen at the overnightlow of $1,309.10 and then at this week’s low of $1,302.30. Wyckoff's MarketRating: 5.0

Julysilver futures bears have the overall near-term technical advantage. Silverbulls' next upside price breakout objective is closing prices above solidtechnical resistance at $17.00 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at $16.00. Firstresistance is seen at this week’s high of $16.62 and then at $16.75. Nextsupport is seen at Thursday’s low of $16.385 and then at $16.25. Wyckoff'sMarket Rating: 3.5.

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.

Gold stocks lead the large cap miners by far over H1/25

Gold stocks up as the metal price and equities gain

Mixed outlook for gold as it remains range bound for past three months

Gold stocks down on flat metal price

Gold stocks down on metal decline