(Kitco News) – Gold and silver prices are firmly lower in early US trading on Friday, in the wake of a surprisingly strong US jobs report that may prompt the Federal Reserve to become even more aggressive in monetary tightening of politics. The US dollar index and US Treasury yields jumped on the jobs news, which in turn helped push gold and silver prices lower. October gold futures were last down $21.70 at $1,774.70. September Comex silver futures were last down $0.507 at $19.615 an ounce.
This morning’s US jobs report for July showed a very strong 528,000 increase in nonfarm payrolls. A profit of about 260,000 was expected. The June jobs report showed an increase of 372,000 nonfarm payrolls. The overall unemployment rate in July fell to 3.5% from 3.6% in June. After today’s strong jobs numbers, “the Fed adventure is not going to happen,” one market commentator told Bloomberg Radio.
Global stock markets were flat to slightly higher overnight. U.S. stock indexes pointed to lower opens at the start of the New York session and sold off after a strong nonfarm payrolls number.
The market remains a bit jittery amid escalating tensions between the US and China, the world’s two largest economies, following US House Speaker Nancy Pelosi’s visit to Taiwan this week. China is conducting aggressive military exercises around Taiwan and has also announced sanctions against Nancy Pelosi and her family. US Secretary of State Blinken said China’s military exercises near Taiwan are a worrying escalation.
Key external markets today see Nymex crude oil prices close to flat and trading around $88.50 a barrel. Crude oil on Thursday hit a 4.5-month low. The US dollar index is sharply higher in early US trading and made a big move higher after the jobs report. The yield on the 10-year US Treasury bond reaches 2.85%.
Other US economic data due on Friday includes the consumer confidence report.
Technically, October gold futures have the overall short-term technical advantage. However, a new uptrend in price is still in place on the daily bar chart to indicate that there is a market bottom. Bulls’ next upside price objective is to create a close above the firm resistance at $1,850.00. Bears’ next short-term bearish objective is to push futures prices below solid technical support at the July low of $1,686.30. First resistance is seen at this week’s high of $1,801.00 and then at $1,825.00. First support is seen at Thursday’s low at $1,769.50 and then this week’s low at $1,759.70. Wyckoff Market Rating: 3.0
September silver futures have the overall short-term technical advantage. However, recent price gains suggest that there is a market bottom. Silver bulls’ next upside price target is closing prices above the firm technical resistance at $21.00. The next bearish price objective for the bears is a price close below the solid support at $19.00. First resistance appears at $20.00 and then at this week’s high at $20.51. The next support is seen at $19.40 and then $19.00. Wyckoff Market Rating: 3.0.
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