(Kitco News) – Gold futures prices are solidly higher in early U.S. trading Friday and held overnight gains despite the release of a key U.S. economic report that was better than market expectations and buoyed general marketplace attitudes. June gold was last up $46.30 at $3,268.60. May silver prices were last up $0.311 at $32.495.
The highly anticipated U.S. data point, Friday morning’s U.S. jobs report for April from the Labor Department, came in upbeat. The key non-farm payrolls number came in at up 177,000, which is above the 133,000 rise expected by the marketplace. However, the March jobs report’s non-farm number was downwardly revised to a rise of 185,000 from 228,000. The unemployment rate in April was unchanged from the March report, at 4.2%.
Asian and European stock markets were mostly up in overnight trading. U.S. stock indexes are pointed to higher openings today in New York. Risk appetite is keener to end the trading week. There are reports the U.S.-China trade war may be showing signs of thawing. National Economic Council Director Kevin Hassett expressed optimism regarding progress in tariff negotiations between the U.S. and China. However, Chinese officials have publicly denied that formal negotiations are underway, with a foreign ministry representative stating there have been “no discussions or negotiations between China and the U.S. concerning tariffs” as of the latest reports. However, other reports say China says its door is “wide open” for trade talks. Bottom line: Both sides appear to be signaling some openness. U.S. officials are expressing hope, and China has made some tariff concessions on U.S. products.
The key outside markets today and see the U.S. dollar index lower. Nymex crude oil futures prices are weaker and trading around $59.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.271%.
Other U.S. economic data due for release Friday includes manufacturers shipments and inventories and the global manufacturing PMI.
Technically, June gold futures bulls have the overall near-term technical advantage but have faded. Bulls’ next upside price objective is to produce a close above solid resistance at $3,350.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $3,100.00. First resistance is seen at the overnight high of $3,277.00 and then at $3,300.00. First support is seen at the overnight low of $3,234.50 and then at this week’s low of $3,209.40. Wyckoff’s Market Rating: 6.5.
May silver futures bulls have the slight overall near-term technical advantage but are fading. A price uptrend on the daily bar chart has been negated. Silver bulls’ next upside price objective is closing prices above solid technical resistance at this week’s high of $33.69. The next downside price objective for the bears is closing prices below solid support at $30.00. First resistance is seen at the overnight high of $32.675 and then at $33.00. Next support is seen at $32.00 and then at this week’s low of $31.685. Wyckoff’s Market Rating: 5.5.
Jim Wyckoff has spent over 25 years involved with the stock, financial and commodity markets. He was a financial journalist with the FWN newswire service for many years, including stints as a reporter on the rough-and-tumble commodity futures trading floors in Chicago and New York. As a journalist, he has covered every futures market traded in the U.S., at one time or another.
Jim is the proprietor of the “Jim Wyckoff on the Markets” analytical, educational and trading advisory service. Jim also worked as a technical analyst for Dow Jones Newswires and as the senior market analyst with TraderPlanet.com. Jim is also a consultant with the highly respected “Pro Farmer” agricultural advisory service. Jim was also the head equities analyst at CapitalistEdge.com. He received his degree from Iowa State University in Ames, Iowa, where he studied journalism and economics.
Follow Jim daily on Kitco.com as he provides both AM and PM roundups and a daily Technical Special.
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