Gold Pressured By Strong U.S. Jobs Report
(Kitco News)- Goldand silver prices are lower in early U.S. trading Friday, in the wake of astrong U.S. jobs report for May that boosted the U.S. dollar index and alsohints at a more aggressive monetary policy from the Federal Reserve. AugustComex gold futures were last down $8.80 an ounce at $1,295.90. July Comexsilver was last down $0.098 at $16.365 an ounce.
Fridaymorning’s U.S. jobs report for May saw the key non-farm payrolls number come inat up 223,000, which was much higher than the expected figure of up around190,000. Wednesday’s ADP jobs report showed a rise of 178,000. Other componentsof the jobs report were also strong, which suggests the U.S. Federal Reservecan be a bit more aggressive on its pace of raising interest rates.
Goldprices hit their daily lows right after the jobs report, while the U.S. dollarindex hit its daily high. However, the gold market has pared its losses thatwere seen right after the jobs data was released.
Worldstock markets were mixed overnight, with Asian indexes mixed and Europeanindexes mostly higher. U.S. stock indexes are pointed toward higher openingswhen the New York day session begins.
Inovernight news, worries regarding the financial and political stability ofItaly were somewhat assuaged when the two major antiestablishment parties madea deal on a coalition government. This is apparently the better alternativethan new elections, according to the sense of the marketplace at present.
TheU.S. on Thursday implementing previously announced tariffs on imports ofaluminum and steel does have traders and investors worried about a global tradewar. Retaliatory tariffs against U.S. products are already being announced fromother countries.
Theother key “outside market” today finds Nymex crude oil prices lower and tradingjust above $65.00 a barrel.
OtherU.S. economic data due for release Friday includes the U.S. manufacturing PMI,construction spending, the ISM manufacturing report on business, the globalmanufacturing PMI, and domestic auto industry sales.
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.2924175530478188)
Technically,August gold bears have the slight overall near-term technical advantage. Pricesare still in a seven-week-old downtrend on the daily bar chart. Gold bulls'next upside near-term price breakout objective is to produce a close above theMay high of $1,332.40. Bears' next near-term downside price breakout objectiveis pushing prices below solid technical support at the May low of $1,286.80.First resistance is seen at the overnight high of $1,304.80 and then at lastweek’s high of $1,312.60. First support is seen at today’s low of $1,293.10 andthen at the May low of $1,286.80. Wyckoff's Market Rating: 4.5
![Live 24 hours silver chart [ Kitco Inc. ]](http://www.kitco.com/images/live/silver.gif)
July silver futures bears have the slight overallnear-term technical advantage. Silver bulls' next upside price breakoutobjective is closing prices above solid technical resistance at $17.00 anounce. The next downside price breakout objective for the bears is closingprices below solid support at the May low of $16.07. First resistance is seen atthis week’s high of $16.615 and then at last week’s high of $16.74. Nextsupport is seen at this week’s low of $16.31 and then at $16.19. Wyckoff'sMarket Rating: 4.5.
By Jim WyckoffFor Kitco News
Follow @jimwyckoff
jwyckoff@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.