U.S. Jobs Report Leads To Solid Price Pressure On Gold And Silver

(CTN News) – Prices of gold and silver are plunging in early U.S. trading Friday, following a stronger-than-expected U.S. jobs report that had some implications for inflation as well as a stronger-than-expected U.S. jobs report.

Gold reached a three-month high overnight, and silver reached a six-month high was reached by silver overnight. There was a decrease of $21.70 in February gold to $1,794.30 and a decrease of $0.30 in March silver to $22.51.

It was announced this morning that the U.S. Jobs Employment Situation Report for November showed that the key non-farm payrolls figure rose 263,000, which is more than the forecast rise of 200,000, and also compared to a revised gain of 284,000 that was reported in the October.

The average hourly earnings rose by 0.5% from October and by 5.09% over the past year. The market considered those figures to be hot and deemed them to be a wise buy.

Overall, this report seems as if it has been compiled with a lot of strength for the Federal Reserve to be satisfied with and that it will be reluctant to back off too much from the tightening of monetary policy that it has pursued for the past few years.

A CNBC economics reporter characterized this report as a “difficult one for the Fed,” according to Steve Liesman, a CNBC economics reporter.

It was a relatively weak night for global stock Jobs markets overnight. U.S. stock indexes are expected to open slightly lower in New York during the day session.

In spite of the civil unrest in China, traders continue to monitor the situation closely. While the protests aren’t spiraling out of control, they are also not going away completely either.

The Chinese government has been reported to be clamping down on internet access. According to reports, some of China’s Covid lockdowns are being relaxed (probably as a result of the protests that have taken place), at the same time that China claims that Covid infections are declining, and vaccinations are on the rise.

As a result, the market has, at least for the time being, become more relaxed about this issue.

Today, the key outside markets are seeing the U.S. dollar index strengthening, after hitting a 3.5-month low overnight as a result of the strong U.S. jobs report. On the Nymex, crude oil prices have remained near steady and are currently trading around $81.00 a barrel.

It has been reported this week that OPEC will consider reducing its total crude oil production at its meeting this weekend. This is part of its efforts to reduce greenhouse gas emissions.

Some reports, however, indicate that the cartel is planning to continue producing at the same level. A price cap of $60 a barrel on Russian crude oil imports is Jobs expected to be set by the European Union on the basis of global oil prices.

As a result, the yield on the benchmark U.S. 10-year Treasury note is currently 3.634%, a significant rise after the jobs report last week.

There was a decrease of 2.9% in the Euro zone producer price index for October compared to September. However, there was a rise of 30.8% compared to a year ago, in the overnight news. As a result, those numbers were a bit lower than expected.

On Friday, no other major economic data will be released in the U.S. Jobs that will affect the economy.

Considering the long-term technical picture, it can be said that the bulls of gold futures have an overall advantage. On the daily bar chart, prices are in an uptrend that has been in place for four weeks.

A bullish price objective for February futures is to close above strong resistance at the $1,836.70 high of August in order to achieve their next upside price goal.

In addition to near-term downside price objectives, the bears’ next short-term objective is to push futures prices below the much-needed technical support at $1,750.00. The first resistance level is Jobs expected to be the overnight high of $1,818.70 and then $1,825.00.

The first support level is expected to be Thursday’s low of $1,782.90 and then $1,770.00. Wyckoff’s Market Rating is 7 out of 10.

I believe that the silver bulls have the strongest technical advantage in the near term. According to the daily bar chart, we are seeing a choppy, three-month-old uptrend.

The next upside price objective for silver bulls is to close March futures prices above strong technical resistance at $24.00. Bears have a downside price objective of closing prices below solid support at $21.00 in order to achieve their next downside price objective.

There are two resistance levels seen today, the first being the high of $23.145 and the second one being $23.50. We are looking for support at Thursday’s low of $22.24 and then at $22.00. The market rating of Wyckoff is 7.

SEE ALSO:

Sales At Costco Drop From October To November