Gold, silver hold overnight gains following weak U.S. jobs data

Silver held its overnight gains and gold added to its modest overnight gains following a U.S. economic report that was weaker than market expectations. Technical buying from the speculators is also featured at mid-week, as the near-term chart postures for both markets are firmly bullish. February gold was last up $30.00 at $4,250.80. March silver prices were up $0.347 at $59.06.

The monthly ADP jobs report for November showed a 32,000 decline in jobs, versus expectations for a rise of 40,000. The data has taken on added importance with official government releases still delayed. Today’s ADP report falls into the camp of the U.S. monetary policy doves, who want to see lower U.S. interest rates sooner.

The yield on the benchmark 10-year U.S. Treasury note held around 4.08%, pausing a recent rise as investors weigh the outlook for Federal Reserve policy. Markets are currently pricing in an 89% chance of a 0.25% rate cut next week at the Fed’s FOMC meeting, with about 0.9% of total Fed easing priced in for 2026. Expectations that White House economic adviser Kevin Hassett will likely be nominated as the next Fed chair have added to the dovish marketplace sentiment. Hassett is known for supporting faster rate reductions in line with President Trump’s stance.

The key outside markets today see the U.S. dollar index lower and at a three-week low. Crude oil prices are higher and trading around $59.50 a barrel.

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 $4,300.00 and then at $4,350.00. 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 today’s contract high of $59.655 and then at $60.00. Next support is seen at $58.00 and then at this week’s low of $56.85. Wyckoff's Market Rating: 9.0.