Gold firmer, silver lower after upbeat weekly U.S. jobless claims report
Gold prices are modestly up and silver prices lower in midday U.S. trading Thursday. Gold is seeing some mild technical buying amid bullish charts. Some normal profit taking from the shorter-term futures traders is featured in silver, amid a normal downside price correction in the existing uptrend. February gold was last up $7.90 at $4,240.00. March silver prices were down $1.16 at $57.45.
Today’s weekly jobless claims report showed applications for U.S. unemployment benefits fell last week to the lowest in more than three years, suggesting employers are still largely holding onto workers despite recent layoff announcements. That report leaned a bit bearish for the precious metals but did not move the needle on the Fed’s monetary policy trajectory. The FOMC is firmly expected to cut U.S. rates by a quarter-point next week.
The key outside markets today see the U.S. dollar index near steady. Crude oil prices are higher and trading around $59.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.1%.
Note: The gold market operates through two primary pricing mechanisms. The first is the spot market, which quotes prices for on-the-spot purchase and immediate delivery. The second is the futures market, which sets prices for delivery at a future date. Due to year-end positioning market liquidity, the December gold futures contract is currently the most actively traded on the CME.
Technically, February gold futures bulls’ next upside price objective is to produce a close above solid resistance at the contract/record high of $4,433.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $4,100.00. First resistance is seen at Wednesday’s high of $4,273.30 and then at $4,300.00. First support is seen at $4,200.00 and then at Tuesday’s low of $4,194.00. Wyckoff's Market Rating: 7.5.
March silver futures bulls have the strong overall near-term technical advantage. Their next upside price objective is closing prices above solid technical resistance at $60.00. The next downside price objective for the bears is closing prices below solid support at $55.00. First resistance is seen at the contract high of $59.655 and then at $60.00. Next support is seen at this week’s low of $56.85 and then at $56.00. Wyckoff's Market Rating: 8.0.
