(Kitco News) – Gold and silver prices are trading near unchanged in early U.S. trading Thursday as much of the marketplace is treading water ahead of a key U.S. economic report that is due out Friday morning. February gold futures were last up $0.70 an ounce at 1,480.80. March Comex silver prices were last up $0.034 at $16.95 an ounce.
Traders are awaiting the U.S. economic data point of the week, if not the month: 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. Wednesday’s 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 and has many thinking Friday’s job’s number will be a downside miss, too.
Asian and European stock indexes were mostly up overnight. The U.S. stock indexes are pointed toward higher openings when the New York day session begins.
Amid a continued lack of other major, markets-moving news in the global marketplace, traders and investors remain fixated on the U.S. and China trade war and the negotiations to end it. December 15 looms as the next inflection point for the trade talks between the world’s two largest economies. Chinese officials said Thursday there will retaliation if the U.S. imposes more tariffs on Chinese imports into the U.S. at that time. The marketplace late this week remains mostly upbeat on prospects for a partial trade deal, but if recent history repeats itself the prospects will soon dim.
In other overnight news, the Euro zone reported its third-quarter gross domestic product up 0.2% from the second quarter and up 1.2%, year-on-year, which was right in line with market expectations but still paints a picture of a lukewarm-at-best Euro zone economy. Germany’s manufacturing orders were on Thursday reported down 0.4% in October and down 5.5% annually. Germany is the economic workhorse for the Euro zone.
The key “outside markets” today see the U.S. dollar index weaker. The USDX hit a four-week low Wednesday and the greenback bulls are fading. Meantime, Nymex crude oil prices are modestly higher and trading around $58.50 a barrel. The OPEC oil cartel is meeting today and is expected to continue to keep production quotas in place to try to keep oil prices propped up.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the Challenger job-cuts report, monthly chain store sales, and manufacturers’ orders and shipments.
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 this week’s 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 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 this week’s high of $17.415 and then at $17.50. Next support is seen at the November low of $16.76 and then at $16.50. Wyckoff’s Market Rating: 5.0.
By Jim Wyckoff
For Kitco News
Contact jwyckoff@kitco.com
www.kitco.com
