(Kitco News) – Gold and silver prices slightly higher at the start of trading in the United States, after seeing some weakness following the July US jobs report . Both metals hit new highs for overnight movement. Gold hit an all-time high of $ 2,078.00, based on October Comex futures, while silver hit an over seven-year high of $ 29.915, based on September Comex futures contracts. Moderate profit-taking by futures traders and a somewhat bullish US jobs report pushed the metals down from their overnight highs. October gold futures were last up $ 1.10 an ounce to $ 2,059.50. Comex silver prices in September last rose $ 0.25 to $ 28.63 an ounce.
The US Department of Labor’s just released July employment report showed the number of non-farm payrolls increased by 1.8 million, which was higher than estimates of an increase of about $ 1. 48 million. The wage bill increased by 4.8 million in June. The unemployment rate for July was 10.2% compared to expectations of a 10.6% rate and compares to an unemployment rate of 11.1% in June.
Importantly, while there are no preliminary chart clues to suggest that the gold and silver markets are near major highs, both are now technically overbought in the near term, and are likely to suffer. downward corrections in uptrends. And remember that with the higher volatility and larger daily price gains seen now, there will also be larger downward corrections when they do occur.
Global stock markets have been weaker in overnight transactions. US stock indexes are pointing towards lower openings when the New York day session begins. Traders and investors are more pessimistic on this last trading day of the week. President Trump has just ordered a ban on relations between American consumers and Chinese owners of the consumer apps TikTok and WeChat. The order is the administration’s latest salvo targeting China, following a trade war and targeted actions against other Chinese companies. The new decrees take effect in 45 days. The market is wondering what will follow in the heated rivalry between the world’s two largest economies and two of the largest armies.
Meanwhile, negotiations between Democrats and US Republicans in Congress over a new stimulus package for Americans have collapsed, with President Trump threatening to take unilateral action on the issue.
In other overnight news, Chinese exports rebounded sharply in July, up 7.2% year-over-year. Its imports fell 1.4% over the period. China’s overseas shipments to the United States in July increased 12.5% year-on-year, the largest increase since 2018. Some attribute the rise in U.S. exports to an anticipated load while relations between two countries deteriorate.
The European Union had some good news on Friday when German industrial production was better than expected in June – up 8.9% from May.
Important foreign markets today are seeing Nymex crude oil prices slightly lower and trading around $ 41.85 per barrel. The US dollar index is higher on a corrective rebound after hitting a two-year low on Thursday. The yield on the benchmark 10-year US Treasury bill is currently around 0.53% and near a record high.
Other US economic data due for release Friday includes monthly wholesale trade and consumer credit.Technically, gold bulls have the strong overall technical advantage in the short term. The next bullish price target is to produce an October futures close above the strong resistance at $ 2,100.00. The next short-term price drop target for the Bears is to push futures prices under strong technical support at $ 2,000.00. First resistance is seen at the overnight high at $ 2,078.00 and then $ 2,100.00. First support is seen at the overnight low of $ 2,041.20 and then at $ 2,015.50. Wyckoff Market Rating: 9.5
The September silver futures bulls have the strong overall short-term technical advantage. The next bullish price target for Silver Bulls is to close prices above strong technical resistance at $ 30.00 an ounce. The next bearish price breakout target for the bears is to close the price below strong support at $ 25.00. First resistance is seen at $ 29.00, then at the overnight high at $ 29.915. The next support is seen at the overnight low of $ 27.67 and then at $ 27.00. Wyckoff Market Rating: 9.0.
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