Gold and silver prices are weaker in early U.S. trading Thursday, as both precious metals markets take a pause ahead of one of the most important U.S. economic data points of the month on Friday morning. April gold was last down $4.70 at $2,888.30. March silver prices were last down $0.451 at $32.525.
Friday comes the important U.S. employment situation report for January, with the key non-farm jobs number seen coming in at up 169,000 versus a rise of 256,000 in the December report. Bloomberg reports the January U.S. payroll numbers “will be hard to parse because of the wildfires in Los Angeles and cold weather in other parts of the country.”
Asian and European shares were mostly higher overnight. U.S. stock indexes are set to open mixed when the New York day session begins. David Morrison from Trade Nation said in an email dispatch today the U.S. stock market recovery “has come as the shock of President Trump’s tariff announcements has moderated. There was relief after the threat of 25% tariffs on U.S. imports from Mexico and Canada were postponed for a month.” The 10% imposition of tariffs on China “is significantly below the 60% initially threatened. China has retaliated with its own trade restrictions which are scheduled to kick in next week. This provides a narrow window for some accommodation to be reached as Presidents Trump and Xi are expected to talk before the deadline,” said Morrison.
In overnight news, the Bank of England cut its main interest rate but struck a hawkish tone by signaling fewer rate hikes.
U.S. Treasury Secretary Bessent said the Trump administration’s focus on bringing down borrowing costs is 10-year Treasury yields.
The Japanese yen has appreciated following comments from a Bank of Japan board member who said interest rates must rise to at least 1% by the second half of the fiscal year beginning in April.
The key outside markets today see the U.S. dollar index higher. Nymex crude oil futures prices are firmer and trading around $71.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.436%. U.S. Treasury Secretary Bessent said the Trump administration’s focus on bringing down borrowing costs is 10-year Treasury yields, rather than the Fed’s benchmark short-term rate.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the Challenger job-cuts report, preliminary productivity and costs, and the monthly chain store sales index.
Technically, April gold futures bulls have the strong overall near-term technical advantage. Prices are trending up on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $3,000.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,800.00. First resistance is seen at $2,900.00 and then at the contract high of $2,906.00. First support is seen at the overnight low of $2,870.40 and then at $2,850.00. Wyckoff’s Market Rating: 9.0.
March silver futures bulls have the overall near-term technical advantage amid a price uptrend in place on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $34.00. The next downside price objective for the bears is closing prices below solid support at $31.00. First resistance is seen at $33.00 and then at the December high of $33.33. Next support is seen at the overnight low of $32.325 and then at $32.00. Wyckoff’s Market Rating: 6.5.
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Source: Jim Wyckoff Kitco
