Gold price weakens, then stabilizes after upbeat U.S. jobs report

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(Kitco News) - Gold and silver prices werelower and hit daily lows in the immediate aftermath of a U.S. jobs report thatwas a bit more upbeat than market expectations. However, prices have sincestabilized and are trading near steady. December gold was last up $1.40 at $1,795.20and December Comex silver was last up $0.006 at $23.92 an ounce.

TheU.S. employment situation report for October showed a rise of 531,000 innon-farm payrolls. The key component was expected to show a rise of 450,000 andcompares to a gain of 194,000 in the September report. The U.S. unemploymentrate came in at 4.6% versus 4.8% in the September report.

Itappears the gold and silver market traders are now more focused on bullish aspectsof rising inflation, and less on the bearish aspects of a tighter U.S. monetarypolicy.

Globalstock markets were mixed in overnight trading. The U.S. stock indexes are pointedto higher openings when the New York day session begins. The U.S. indexes hitrecord highs again overnight. Traders and investors are generally in upbeat moodsat present, as U.S. corporate earnings reports have been very positive. Riskappetite got another boost Friday morning when Pfizer reported its Covid-19 pillas 89% effective in reducing hospitalization and death.

Thekey outside markets today see the U.S. dollar index higher and near the highfor the year. Nymex crude oil prices are higher and trading around $79.65 abarrel. The oil market bulls have become wobbly this week. Meantime, the10-year U.S. Treasury note yield is presently fetching 1.532%.

OtherU.S. economic data due for release Friday includes consumer credit.

Technically,December gold futures bulls and bears are on a level overall near-term technicalplaying field. Bulls' next upside price objective is to produce a close above solidresistance at the October high of $1,815.50. Bears' next near-term downside priceobjective is pushing futures prices below solid technical support at theSeptember low of $1,721.10. First resistance is seen at the overnight high of$1,801.40 and then at this week's high of $1,815.50. First support is seen at $1.780.00and then at Thursday's low of $1,769.30. Wyckoff's Market Rating: 5.0

The silver bears have the slight overall near-term technicaladvantage. A two-week-old downtrend is in place on the daily bar chart. Silver bulls'next upside price objective is closing December futures prices above solid technicalresistance at $25.00 an ounce. The next downside price objective for the bears isclosing prices below solid support at $22.50. First resistance is seen at $24.00and then at this week's high of $24.175. Next support is seen at Thursday's lowof $23.485 and then at this week's low of $23.045. Wyckoff's Market Rating: 4.5.

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.

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