Gold Lifted By Downbeat U.S. Jobs Report

(Kitco News) - Gold prices aremodestly higher in early U.S. trading Friday, boosted by a weaker-than-expectedU.S. employment report. June Comex gold futures were last up $4.30 an ounce at$1,332.70. May Comex silver was last up $0.03 at $16.39 an ounce.

Thejust-released U.S. employment situation report for March from the LaborDepartment showed the key non-farm payrolls number up 103,000, which was a bigmiss to the downside. The jobs number was forecast to come in at up 178,000.Wednesday's ADP jobs number came in much higher than expected, at up 241,000,which had hinted this morning's job number would come in hot.

TheU.S. dollar index weakened on the jobs report, which also is working in favorof the precious metals bulls on this day.

Worldstock markets were mostly lower overnight. U.S. stock indexes are also pointedtoward lower openings when the New York day session begins. The marketplace isagain rattled at least a bit as U.S. President Donald Trump said late Thursdayhe might impose another $100 billion in tariffs on China's imports. Meantime,China's news outlets are already saying China will fight the U.S. on tradematters to the bitter end. Trump has already slapped $50 billion in tariffs onChina's products. In the near term, look for more market volatility coming fromthis situation. Such should be a positive for the gold and silver markets.

OtherU.S. economic data due for release Friday includes the consumer installmentcredit report.

Technically,Junegold bulls have the overall near-term technical advantage amid recentchoppy trading. Gold bulls' next upside near-term price breakout objective isto produce a close above solid technical resistance at the March high of $1,362.60.Bears' next near-term downside price breakout objective is pushing prices belowsolid technical support at the March low of $1,309.30. First resistance is seenat Thursday's high of $1,338.70 and then at $1,347.00. First support is seen attoday's low of $1,322.60 and then at the March low of $1,312.40. Wyckoff'sMarket Rating: 6.0

May silver futures bears have the overall near-term technical advantage amid recentchoppy trading. Silver bulls' next upside price breakout objective is closingprices above solid technical resistance at the March high of $16.895 an ounce.The next downside price breakout objective for the bears is closing pricesbelow solid support at $16.00. First resistance is seen at $16.50 and then at thisweek's high of $16.68. Next support is seen at this week's low of $16.15 andthen at the March low of 16.10. Wyckoff's Market 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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