Gold, Silver Prices A Bit Weaker After Upbeat U.S. Jobs Data

(Kitco News) - Gold and silver prices areslightly lower in early U.S. trading Friday. The just-released U.S. jobs reportwas deemed upbeat, but precious metals prices saw little reaction to the newsand saw their mild overnight losses maintained. Augustgold futures were lastdown $1.90 an ounce at $1,257.00. July Comex silver was last down $0.022 at $16.075an ounce.

Theclosely followed U.S. employment report from the Labor Department saw Junenon-farm payrolls come in at up 213,000, which was higher than the consensusforecast of up 195,000. The April and May non-farm jobs numbers were alsorevised upwards by a net 37,000. However, the overall unemployment rate rose to 4.0% inJune from 3.8% in May, mainly due to more would-be workers entering the jobmarket. The closely watched average hourly earnings figure for June rose by5 cents, to $26.98. Wages in the period rose by 2.7%, on an annual basis.Overall, this jobs report falls into the camp of the U.S. monetary policyhawks, who want the Federal Reserve to raise interest rates at a faster pace.The markets showed little significant reaction to today’s report.

Worldstock markets were mostly higher overnight. U.S. stock indexes are pointedtoward narrowly mixed openings when the New York day session begins.

TheU.S. and China remain headed for a full-blown trade war. Both nations on Fridayput into effect their already-announced trade sanctions against each other. Chinatoday said the U.S. has launched the biggest trade war in economic history. Theworld marketplace did not react much to this news, as the tit-for-tat movestoday were fully expected. However, the Federal Reserve’s FOMC minutes releasedThursday afternoon showed committee members are worried about a trade warcurtailing U.S. economic growth.

Inother news, reports said that Bitcoin today becomes outlawed as a transactionvehicle by India.

TheEuro zone got some much-need positive economic news today when Germanindustrial production showed a solid rise of 2.6% in May, from April.

Thekey “outside markets” today find Nymex crude oil prices weaker and trading around$72.50 a barrel. The U.S. dollar index is also lower as the greenback bullshave faded a bit this week.

OtherU.S. economic data due for release Friday includes the international trade ingoods and services report.

Technically,gold bears have the firm overall near-term technical advantage amid the pricedowntrend on the daily bar chart. Gold bulls' next upside near-term pricebreakout objective is to produce a close in August futures above solidresistance at $1,275.00. Bears' next near-term downside price breakoutobjective is pushing prices below solid technical support at $1,230.00. Firstresistance is seen at this week’s high of $1,262.40 and then at $1,269.40.First support is seen at $1,250.00 and then at $1,245.00. Wyckoff's MarketRating: 2.5

Septembersilver futures bears have the firm overall near-term technical advantage.Silver bulls' next upside price breakout objective is closing prices abovesolid technical resistance at $16.50 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at the Decemberlow of $15.50. First resistance is seen at this week’s high of $16.195 and thenat $16.25. Next support is seen at $15.97 and then at this week’s low of $15.80.Wyckoff's Market Rating: 2.5.

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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