(Kitco News) – Gold prices are modestly higher and close to daily highs in early US trade Friday, and have moved up well from solid overnight losses. A lukewarm US employment report just released has breathed some new life into the safe oxygen metals that have been on the defense late this week. Bullish traders also agreed to "buy the dips" in both the gold and silver markets. Gold futures last December were up $ 4.40 per ounce at 1
The recently released US Employment Report for August from the Labor Department showed that the key "non-farm" payrolls in the report increase 130,000, which is a downside to market expectations of a gain of 150,000. This report falls into the camp of American monetary policy pigeons, who want to see interest rate cuts in the coming months, including in September when the FOMC meets in less than two weeks. Thursday's ADP national employment report for August reached 195,000 jobs, which was significantly higher than the forecast of 140,000. This made today's workplaces even more surprisingly weak.
The Asian and European stock markets were generally higher overnight. US stock indices point to higher openings as the day in New York begins. Tradition and investor risk appetite have improved significantly this week, which has pushed the US stock indices back to the height of summer.
Protesters will demonstrate in Hong Kong again this weekend, reports say. This week, Hong Kong's leader withdrew from consideration of a proposed law that would have allowed extradition of Hong Kong citizens to Mainland China for criminal litigation. Right now, it seems doubtful that the return of Hong Kong's leader in the extradition case will be enough to stop the civil unrest. Now, protesters are calling for more change, including Hong Kong's resigning leader. It is important that the Fitch rating agency has just downgraded the main rating in Hong Kong.
The Brexit saga continues as the October deadline for a UK agreement with the EU approaches. Prime Minister Boris Johnson wants without extension the time to reach a "soft" Brexit. He said Thursday he would "rather be dead in a ditch" than expand Brexit talks. However, the votes of Parliament seem to have defeated his "hard" Brexit stance. The case continues to disrupt European markets.
China's central bank moved to ease its monetary policy again Friday by lowering its reserve requirement ratio for banks.
The euro area GDP in the second quarter of Friday came up 0.2% from the first quarter and increased by 1.2% from the previous year.
The most important "outside markets" today show that Nymex crude oil prices weakened and traded around $ 55.35 a barrel. The US dollar index is a little weaker in the early US trade today.
There is no other US economic data to release on Friday. Federal Reserve Chairman Jerome Powell gives a speech in Zurich, Switzerland later Friday.
Technically, gold bull still has the overall technical technological advantage. A three-month-old trend is in place in the daily bar chart. The Bulls' next upside target is to produce an end to October futures over solid resistance of $ 1,600.00. Bears & # 39; s next long-term downward price trend is to push futures prices in December under solid technical support to $ 1,500.00. First resistance is seen at the highest night of $ 1,528.50 and then at 1,535.00. First aid can be seen on the low night at $ 1,510.70 and then at $ 1500.00. Wyckoff's market valuation: 7.0
December silver futures bulls still have the general technical near-term advantage. Prices are in a three-month-old trend on the daily bar chart. The Silver Bulls' next upside price distribution goal is to close prices over solid technical resistance at $ 20.00 per ounce. The next price trend for the Bears is to close the prices under solid support at the week's low price of $ 17.64. First resistance is seen at $ 19.00 and then at $ 19.25. Next support is seen at $ 18.50 and then at $ 18.25. Wyckoff Market Review: 7.0.
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