(Kitco News) – Gold and silver prices are modestly weaker in early U.S. trading Friday. The metals have shown no significant reaction to the overnight news that President Trump and his wife have tested positive for Covid-19. Also, the just-released U.S. jobs report saw the metals not show a big price reaction. December gold futures were last down $3.30 at $1,913.20 and December Comex silver was last down $0.154 at $24.10 an ounce.
The just-released U.S. economic data point of the week is the monthly jobless report for September from the Labor Department that saw the key non-farm payrolls number up 661,000, compared to the forecast of up 875,000. The unemployment rate was at 7.9% versus the forecast of 8.2%. This report is being deemed a bit disappointing by many analysts. Trump’s Covid-19 news is likely overshadowing the impact of the jobs report.
Global stock markets were mostly weaker overnight. Some Asian markets were closed for a holiday. U.S. stock indexes are set to open the New York day session solidly lower. The news that Trump tested positive for Covid-19 has still rattled the marketplace a bit. Trump’s re-election campaign has been thrown into turmoil when he was already well behind in the polls. The bottom line on this matter: even more marketplace uncertainty in an already very uncertain U.S. presidential election atmosphere. Trump’s positive Covid test puts the spotlight back on a resurgence of infections in many major countries that could turn into a “second wave” that again damages economies that have just begun to recover from the first lockdown. Vice President Pence has reportedly tested negative for Covid this morning, as well as Treasury Secretary Mnuchin.
In other overnight news, the Euro zone September CPI came in at -0.3% versus -0.2% in August. Year-on-year, the Euro zone CPI was up 0.2% in September. Once again, the data coming from most major world economies is not pointing to a resurgence of inflation anytime soon.
The important outside markets early today see the U.S. dollar index slightly up. Nymex crude oil prices are solidly lower, hit a three-week low and are trading around $37.30 a barrel. Meantime, the yield on the U.S. Treasury 10-year note is trading around 0.66% today.
Other U.S. economic data due for release Friday includes the ISN New York report on business, manufacturers’ shipments and inventories, and the University of Michigan consumer sentiment survey.
Technically, the December gold futures bulls have the overall near-term technical advantage but prices are still trending down on the daily bar chart. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $1,950.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the September low of $1,851.00. First resistance is seen at $1,925.00 and then at $1,930.00. First support is seen at the overnight low of $1,895.20 and then at $1,880.00. Wyckoff’s Market Rating: 6.5
December silver futures bulls have the overall near-term technical advantage. However, prices are still trending lower on the daily chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $25.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the September low of $21.81. First resistance is seen at this week’s high of $24.545 and then at $25.00. Next support is seen at $23.235 and then at $23.00. Wyckoff’s Market Rating: 6.5.
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