(Kitco News) – Gold prices are slightly up in early U.S. trading Wednesday and have erased modest overnight losses following a downbeat U.S. economic report that was just released. February gold futures were last up $0.60 an ounce at 1,485.50. March Comex silver prices were last down $0.013 at $17.24 an ounce.
The just-released ADP national employment report for November came in at up just 67,000 jobs, which is a big miss to the downside from market expectations for a rise of 150,000. The gold market erased modest overnight losses on the news. The U.S. economic data point of the week is Friday’s employment situation report from the Labor Department. The key non-farm payroll number is expected to come in at up around 185,000 jobs.
Asian equities were weaker and European stock markets were mostly firmer overnight. The U.S. stock indexes are pointed toward higher openings when the New York day session begins.
Amid a lack of other major news developments trader and investor focus remains on the rhetoric coming from the U.S. and China regarding their trade negotiations. For whatever reason, the marketplace at mid-week is more upbeat than Tuesday, on the chances for a trade agreement soon between the world’s two largest economies. It’s hard to imagine the two sides reaching a substantive trade deal soon, given comments coming from both sides. And the U.S. House of Representatives passed a bill late Tuesday requiring U.S. punishment of Chinese officials involved in the repression of Uighur Muslims in the country. China quickly vowed retaliation.
In overnight news, the Eurozone composite purchasing managers’ index (PMI) for November came in at 51.9 versus the consensus forecast for a reading of 51.5. A number above 50.0 suggests expansion.
The key “outside markets” today see the U.S. dollar index weaker. The greenback bulls have faded recently. Meantime, Nymex crude oil prices are higher and trading around $57.15 a barrel.
Other U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the U.S. services PMI, the ISM non-manufacturing report on business, the global services PMI, and the weekly DOE liquid energy stocks report.
Technically, the gold bulls and bears are on a level overall near-term technical playing field. A three-month-old downtrend on the daily bar chart has been negated this week. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at $1,500.00. Bears’ next near-term downside price breakout objective is pushing futures prices below solid technical support at the November low of $1,453.10. First resistance is seen at the overnight high of $1,489.90 and then at $1,500.00. First support is seen at $1,475.00 and then at $1,465.00. Wyckoff’s Market Rating: 5.0
March silver futures bulls and bears are back on a level overall near-term technical playing field. A three-month-old downtrend on the daily bar chart has been negated. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $17.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the November low of $16.76. First resistance is seen at today’s high of $17.415 and then at $17.50. Next support is seen at $17.00 and then at this week’s low of $16.895. Wyckoff’s Market Rating: 5.0.
By Jim Wyckoff
For Kitco News
Contact jwyckoff@kitco.com
www.kitco.com
