Gold Prices Modestly Up; U.S. Jobs Data Has Little Initial Impact

(Kitco News) - Gold pricesaremodestly higher in early U.S. trading Friday and little changed from levelsseen just before an important U.S. economic report was released. December gold futures were last up $2.80 an ounce at $1,204.30. December Comex silver waslast up $0.06 at $14.645 an ounce.

Thismorning's U.S. Labor Department Employment Situation Report for Septembershowed the key non-farm payrolls number come in up 134,000, which was a miss tothe downside as the consensus forecast was up 180,000. However, the July andAugust reports revised up significantly the non-farm jobs numbers by a total of87,000. Inclement weather-namely hurricanes--in the reporting period is alsoblamed for the lower jobs reading. The September unemployment rate fell to3.7%--the lowest level since 1969. The U.S. wage-growth figure is also closelywatched, and it came in at 2.8% versus 2.9% in the August report.

Worldstock markets were mostly lower overnight, still pressured by rising worldgovernment bond yields. U.S. stock indexes are pointed toward slightly higheropenings when the New York day session begins. Chinese markets have been closedall week for a public holiday.

TheU.S. Treasury 10-year note yield rose to a seven-year high above 3.20% thisweek. Strong U.S. economic data recently is driving U.S. bond and note priceslower.

Thekey outside markets today find the U.S. dollar index near steady. Meantime, NovemberNymex crude oil prices are firmer and trading just below $75.00 a barrel.

OtherU.S. economic data due for release Friday includes the international tradereport and consumer credit.

Technically,gold bears have the overall near-term technical advantage. However, prices areback in the middle of a trading range, which again suggests the metal has putin a market bottom. Gold bulls' next upside near-term price breakout objectiveis to produce a close in December futures above solid resistance at $1,220.70.Bears' next near-term downside price breakout objective is pushing prices belowsolid technical support at the August low of $1,167.10. First resistance isseen at this week's high of $1,212.30 and then at $1,218.00. First support is seenat $1,200.00 and then at this week's low of $1,188.10. Wyckoff's Market Rating:3.0

Decembersilver futures bears have the overall near-term technical advantage, but recentprice action suggests a market bottom is in place. Silver bulls' next upsideprice breakout objective is closing prices above solid technical resistance at $15.00an ounce. The next downside price breakout objective for the bears is closingprices below solid support at the September low of $13.965. First resistance isseen at $13.80 and then at this week's high of $14.95. Next support is seen at$14.50 and then at this week's low of $14.395. Wyckoff's Market 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.

Many new players enter TSXV gold Top 25 by market cap

Gold stocks mixed on moderate metal gain, flat equities

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