(Kitco News) – Gold prices are slightly down in early U.S. trading Friday, following a major U.S. economic report that came in hotter than market expectations. Silver prices are solidly lower on some profit taking from this week’s strong gains. June gold was last down $3.60 at $2,304.50. May silver was last down $0.60 at $26.65.
The U.S. data point of the week, if not the month, this morning saw the March employment situation report from the Labor Department show a much-higher-than-expected rise of 303,000 in the key non-farm payrolls number. The marketplace expected a rise of 200,000 and compares to a revised gain of 270,000 in the February report. The unemployment rate was as expected at 3.8% versus the February report reading of 3.9%. This jobs report falls into the camp of the U.S. monetary policy hawks, who want to see the Federal Reserve hold off on cutting interest rates.
Asian and European stock indexes were mostly lower overnight. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins. China markets were closed Friday for a holiday.
The key outside markets today see the U.S. dollar index a higher and near the daily high after the stronger jobs report. Nymex crude oil prices are near steady and trading around $86.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching 4.37% and up-ticked after the jobs report.
Other U.S. economic data due for release Friday includes the consumer credit report.
Technically, the gold futures bulls have the strong overall near-term technical advantage. A six-week-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at $2,400.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,250.00. First resistance is seen at the contract high of $2,324.80 and then at $2,335.00. First support is seen at the overnight low of $2,286.20 and then at $2,267.10. Wyckoff’s Market Rating: 8.5.
The silver bulls have the solid overall near-term technical advantage. Prices are in an accelerating six-week-old uptrend on the daily bar chart. Silver bulls’ next upside price objective is closing May futures prices above solid technical resistance at $28.00. The next downside price objective for the bears is closing prices below solid support at $25.00. First resistance is seen at the overnight high of $27.10 and then at this week’s high of $27.455. Next support is seen at the overnight low of $26.40 and then at $26.00. Wyckoff’s Market Rating: 8.0.
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