Gold Price Weaker After Upbeat U.S. Jobs Data

(July 8th, 2022-Jim Wyckoff)

(Kitco News) - Gold and silver prices are modestly lower in early U.S. price action Friday, in the wake of a key U.S. economic report that was deemed positive. August gold futures were last down $3.00 at $1,736.60. September Comex silver futures were last down $0.118 at $19.07 an ounce.

The U.S. data point of the week is Friday morning’s employment situation report for June. The key non-farm payrolls number came in at up 372,000, versus market expectations for a rise of 250,000 and compares to the 390,000 gain in the May report. The unemployment rate in June was 3.6%. Gold dipped a bit on the news, but more importantly, U.S. Treasury yields rose. The rising U.S. bond yields late this week suggest the marketplace is putting inflation worries back closer the front burner of the marketplace, and maybe on par with recession worries.

Global stock markets were mixed overnight. U.S. stock indexes are pointed toward slightly weaker openings when the New York day session begins.

In overnight news, former Japanese prime minister Shinzo Abe was assassinated during a speech.

The key outside markets today see Nymex crude oil prices slightly down and trading around $102.25 a barrel. The U.S. dollar index is slightly up early today. The yield on the 10-year U.S. Treasury note is fetching 3.067%.

Other U.S. economic data due for release Friday includes monthly wholesale trade and consumer credit.

Technically, the August gold futures bears have the solid overall near-term technical advantage as prices hit an 8.5-month low Wednesday. Bulls’ next upside price objective is to produce a close above solid resistance at $1,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00. First resistance is seen at $1,750.00 and then at Wednesday’s high of $1,771.50. First support is seen at the overnight low of $1,734.70 and then at this week’s low of $1,730.70. Wyckoff's Market Rating: 1.5

September silver futures bears have the solid overall near-term technical advantage as prices hit a two-year low Wednesday. Silver bulls' next upside price objective is closing prices above solid technical resistance at the May low of $20.525. The next downside price objective for the bears is closing prices below solid support at $18.00. First resistance is seen at $19.50 and then at $19.85. Next support is seen at $19.00 and then at this week’s low of $18.705. Wyckoff's Market Rating: 1.0.