Gold Up; FOMC Minutes A Non-Event As Traders Await U.S. Jobs Report

(Kitco News) - Gold and silver prices aremodestly to slightly higher in early-afternoon U.S. trading Thursday, on mildcorrective rebounds after both metals hit multi-month lows earlier this week.This afternoon’s release of the minutes from the latest meeting of the FederalOpen Market Committee (FOMC) did not have a significant impact on preciousmetals prices. August gold futures were last up $3.60 an ounce at $1,256.90.July Comex silver was last up $0.017 at $16.06 an ounce.

TheFOMC minutes saw committee members concerned about the economic impact of thetrade disputes between the U.S. and its major trading partners. The FOMC alsolowered slightly the U.S. gross domestic product growth rate for the secondquarter.

Thismorning’s ADP national employment report for June showed a rise of 177,000versus the forecast for a gain of 185,000 jobs. The more important U.S.employment report from the Labor Department is out Friday morning, with thenon-farm jobs number expected to come in at up 195,000 in June. The U.S. dollarindex traded down to its session low following the ADP report, which worked tosupport some buying interest in the metals today.

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TheU.S. and China remain headed for the Friday showdown on putting into effecttheir already-announced trade sanctions against each other. A Chinese officialsaid Thursday the U.S. is firing shots to the world, including itself,” on thetrade matter.

Theother key “outside markets” today find the U.S. dollar index moderately lower.Nymex crude oil prices are also down on some profit taking after hitting a3.5-year high on Tuesday. A UBS energy analyst said Brent crude oil pricescould briefly hit $100.00 due to a world supply shortage.

Technically,the gold bears still have the firm overall near-term technical advantage. A2.5-month-old downtrend is in place on the daily bar chart. Gold bulls' nextupside near-term price breakout objective is to produce a close above solidtechnical resistance at $1,275.00. Bears' next near-term downside pricebreakout objective is pushing prices below solid technical support at$1,230.00. First resistance is seen at today’s high of $1,262.40 and then at$1,270.00. First support is seen at $1,250.00 and then at this week’s low of$1,238.80. Wyckoff's Market Rating: 3.0

Thesilver bears have the solid overall near-term technical advantage. Silver bulls'next upside price breakout objective is closing prices above solid technicalresistance at $16.50 an ounce. The next downside price breakout objective forthe bears is closing prices below solid support at $15.50. First resistance isseen at today’s high of $16.195 and then at $16.25. Next support is seen atthis week’s low of $15.80 and then at $15.75. Wyckoff's Market Rating: 2.0.

SeptemberN.Y. copper closed down 880 points at 282.90 cents today. Prices closed nearthe session low and hit a 12-month low today. The copper bears have the solidoverall near-term technical advantage. Copper bulls' next upside priceobjective is pushing and closing prices above solid technical resistance at300.00 cents. The next downside price objective for the bears is closing pricesbelow solid technical support at 270.00 cents. First resistance is seen at285.00 cents and then at 290.00 cents. First support is seen at today’s low of282.05 cents and then at 280.00 cents. Wyckoff's Market Rating: 1.0.

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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