Price advances for gold, silver after mostly as-expected U.S. jobs data

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(Wallace Refiners) – Gold and silver futures prices are trading higher in early U.S. dealings Friday, following the key U.S. data point of the day that saw the U.S. January jobs report come in mostly as expected. Gold and silver did rally modestly after the jobs report because even though there were no big surprises in the data, the data does suggest a U.S. economy that is listing again. April gold futures were last up $12.60 at $1,803.40 and March Comex silver was last up $0.461 at $26.695 an ounce.

The U.S. employment situation report for January, arguably the most important U.S. data point of the month, showed a non-farm payrolls rise of 49,000 and an unemployment rate of 6.3%. The non-farm jobs number was very close to market expectations and the unemployment rate was a bit lower than expected. Still, the data suggests the world’s largest economy is still far from fully recovered from the Covid-19 pandemic and is still down 12 million jobs from last year at this time.

Global stock markets were mixed to firmer overnight. U.S. stock indexes are pointed toward higher openings and record highs when the New York day session begins. Once again, the U.S. stock index bulls have shown keen resilience in coming right back from recent solid losses, to keep their longer-term price uptrends alive and well. Trader/investor risk sentiment continues upbeat. The Biden administration is working to get fresh stimulus funds to Americans and such will likely occur in the coming weeks. Also, new Covid 19 cases and hospitalizations in the U.S. are ticking down a bit, suggesting the virus may have already peaked.

A theme that may be flying under the radar of much of the marketplace is the recent change in near-term price trends for the major currencies. In the past month, the U.S. dollar index has been trending higher, while currencies like the Euro common currency, Australian and Canadian dollars, the Swiss Franc and the Japanese yen have been trending down against the greenback.

The key “outside markets” today see the U.S. dollar index a bit weaker after hitting a two-month high Thursday. Meantime, Nymex crude oil futures prices are higher, hit a 12-month high, and are trading around $56.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note stands at 1.136%.

Other U.S. economic data due for release Friday includes the international trade in goods and services report and the consumer credit report.

Technically, the February gold futures bears have the overall near-term technical advantage amid a price downtrend in place on the daily chart. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at last week’s high of $1,878.80. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the November low of $1,771.30. First resistance is seen at the overnight high of $1,812.40 and then at $1,825.00. First support is seen at today’s low of $1,792.20 and then at $1,771.30. Wyckoff’s Market Rating: 4.0

March silver futures bulls still have the slight overall near-term technical advantage but have faded badly this week. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the January high of $28.105 an ounce. The next downside price objective for the bears is closing prices below solid support at $25.00. First resistance is seen at $27.00 and then at $27.26. Next support is seen at the overnight low of $26.255 and then at $26.00. Wyckoff’s Market Rating: 5.5.