Jim Wyckoff  

Thursday August 03, 2017 12:43

(Kitco News) - Gold prices were ending the U.S. day session modestly lower Thursday. Some normal profit taking by the shorter-term futures traders was featured after gold prices hit a six-week high earlier this week. Some traders were on the sidelines ahead of Friday morning’s key U.S. jobs report. December Comex gold was last down $4.30 an ounce at $1,274.10. September Comex silverwas last down $0.103 at $16.625 an ounce.

Friday’s U.S. employment report from the Labor Department is arguably the most important U.S. data point of the month. Forecasts call for the key non-farm payrolls number to come in at up 180,000. The ADP national employment report on Wednesday showed a rise of 178,000 jobs. A non-farm jobs reading on Friday morning that significantly misses market expectations is likely to shake up many markets, including gold.

A quieter geopolitical landscape this week is also not benefiting the safe-haven gold market. However, there are plenty of world issues simmering on the back burner that could come to the fore very quickly and ignite some safe-haven demand for gold.

The U.S. dollar index is slightly lower in early afternoon trading. Prices hit a 13-month low on Wednesday.  Meantime, the Euro currency is at a 2.5-year high amid the slumping greenback. The present postures of the dollar index and the Euro currency are bullish for the precious metals markets.

Nymex crude oil futures are modestly lower in early-afternoon trading Thursday and trading just below $50.00 a barrel.

Technically, December gold futures bulls still have the overall near-term technical advantage amid a near-term price uptrend. Bulls’ next upside technical objective is pushing prices above chart resistance at the $1,300.00. Bears' next near-term downside price breakout objective is closing prices below solid technical support at last week’s low of $1,249.40. First resistance is seen at this week’s high of $1,280.30 and then at $1,290.00. First support is seen at today’s low of $1,262.90 and then at $1,255.00. Wyckoff’s Market Rating: 6.0

September silver prices hit a six-week high Wednesday but have backed off on some profit taking. Bulls and bears are on a level overall near-term technical playing field. However, silver prices have been trending higher for four weeks. The next upside price breakout objective is closing futures prices above solid technical resistance at $17.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at this week’s high of $16.96 and then at $17.00. Next support is seen at the overnight low of $16.42 and then at $16.225. Wyckoff's Market Rating: 5.0.