Gold, silver erase overnight losses after data show U.S. economy lukewarm
Gold prices are up just a bit and silver prices are near steady in midday U.S. trading Tuesday, following of a slew of economic data that showed the U.S. economy is not running hot but neither is it cooling off too rapidly. Gold and silver prices had been weaker overnight and leading right up to the U.S. reports, and in the wake of the reports both metals erased their losses and climbed just a bit. February gold was last up $15.80 at $4,350.70. March silver prices were up $0.056 at $63.67.
U.S. nonfarm payrolls increased 64,000 in November after declining 105,000 in October, adding to the choppiness seen in the U.S. labor market in recent months. The overall unemployment rate rose to 4.6% versus 4.5% expected by the marketplace and continued its upward climb as many out-of-work Americans struggle to land new jobs. A separate report out Tuesday showed U.S. retail sales were little changed in October as a decline at auto dealers and weaker gasoline receipts offset stronger spending in other categories. And figures from S&P Global showed U.S. business activity expanded in December at the slowest pace in six months, while a measure of input prices jumped to a more than three-year high.
The key outside markets today see the U.S. dollar index modestly lower. Crude oil prices are solidly lower, hit an eight-month low, and are trading around $55.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.16%.
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 $4,200.00. First resistance is seen at today’s high of $4,367.90 and then at last week’s high of $4,387.80. First support is seen at the overnight low of $4,297.40 and then at $4,250.00. Wyckoff's Market Rating: 8.0.
March silver futures bulls’ next upside price objective is closing prices above solid technical resistance at $67.50. The next downside price objective for the bears is closing prices below solid support at $57.00. First resistance is seen at this week’s high of $64.26 and then at the record high of $65.085. Next support is seen at this week’s low of $61.605 and then at $61.00. Wyckoff's Market Rating: 9.0
