Gold Up Amid Weaker USDX, ADP Jobs Data, And Some Safe-Haven Demand

(Kitco News) – Gold and silver prices are higher in early U.S. trading Thursday. A weaker U.S. dollar index today and some slightly downbeat U.S. economic news are supporting some buying interest in the precious metals markets. Also, there could even be some safe-haven demand at work supporting the metals today, amid new and unflattering revelations about U.S. President Trump. December gold futures were last up $9.90 an ounce at $1,211.20. December Comex silver was last up $0.075 at $14.295 an ounce.

The just-released ADP national employment report for August came in at up 163,000 jobs, which was slightly below market expectations and did give the gold and silver market prices a slight, further boost. Traders and investors now await what is arguably the most important U.S. economic report of the month, due out on Friday: the Labor Department’s employment situation report for August. The key non-farm payrolls component is expected to be up around 190,000.

The New York Times story from an anonymous Trump administration official saying the U.S. President is unhinged could be prompting some safe-haven demand for gold and silver today. The story follows a book by well-known author Bob Woodward that was released this week, which also painted a bleak picture of the Trump presidency.

Some mild safe-haven buying in the precious metals could also be coming from the solid losses in Bitcoin today, after Goldman Sachs decided not to pursue trading in that instrument.

World stock markets were mixed overnight, with European shares mostly firmer and Asian stocks mostly down. U.S. stock indexes are also pointed toward slightly higher openings when the New York day session begins. Trade disputes remain in the front burner of the marketplace late this week as today is the last day for public comment on a new set of $200 billion in U.S. tariffs on China’s imports.

Many world commodity market prices have been at least somewhat impacted by an emergency export tax implemented by the government of Argentina earlier this week. Officials there are trying to fend off a financial crisis that has occurred in part because the Argentine peso has plunged in value against the U.S. dollar.

The key outside markets today find the U.S. dollar index lower. Meantime, Nymex crude oil prices are slightly higher. Price action the past couple days in crude suggests the oil bulls have run out of gas.

There is a very heavy slate of U.S. economic data due for release Thursday, including the weekly jobless claims report, the Challenger job-cuts report, the ADP national employment report, revised productivity and costs, the U.S. services PMI, manufacturers’ shipments and inventories, the ISM non-manufacturing report on business, the global services PMI, the monthly chain store sales index, and the weekly DOE liquid energy stocks report.

Technically, gold bears have the firm overall near-term technical advantage. Gold bulls’ next upside near-term price breakout objective is to produce a close in December futures above solid resistance at last week’s high of $1,220.70. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at the August low of $1,167.10. First resistance is seen at $1,215.00 and then at $1,220.70. First support is seen at $1,200.00 and then at this week’s low of $1,195.10. Wyckoff’s Market Rating: 2.5

December silver futures bears have the solid overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $15.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.00. First resistance is seen at $14.405 and then at Tuesday’s high of $14.59. Next support is seen at the overnight low of $14.17 and then at $14.00. Wyckoff’s Market Rating: 1.5.

By Jim Wyckoff
For Kitco News


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