Editor’s Note: With such market volatility, stay up to date with daily news! Let yourself be taken in minutes with our quick summary of today’s must-see news and expert opinions. Register here!
(Kitco News) – Gold prices trade slightly lower in early US deals Friday, following a record drop of 20.5 million non-farm payroll jobs in the United States in April. The unemployment rate in the United States climbed to 14.7% from only 4.4% in March. The market, including gold and silver, showed little reaction to the bad news as it was fully expected. According to weekly reports from unemployed Americans, the past few weeks show that the American workforce has lost more than 30 million jobs in less than two months. June’s gold futures were down $ 4.00 an ounce to $ 1,721.90. July Comex silver prices were up $ 0.20 to $ 15,795 an ounce.
Global stock markets were mostly firmer in the night trade. The US stock indices are oriented towards higher openings when the New York day session begins. The general public (and not the investing public) is starting to resume the solid rebound in the American stock market despite the gloom and fate that continues to surround the American and world economies. The vast majority of traders and regular investors know that the recovery in the stock market means that the market expects the North American and European economies to come back to life in the coming months. However, for the general public, most of whom do not have equity portfolios, the rallying stock markets could give Wall Street another glimpse of darkness amid the perception that the wealthy are getting richer in these times extremely difficult who have so many unemployed. Don’t be surprised if the US presidential election this fall pays at least some attention to this issue.
On the positive side of the ledger on the last trading day of the week, US and Chinese trade officials held a conference call overnight, reports said. The call was apparently sparked by President Trump threatening to cancel the Phase 1 trade deal signed in January. Reports indicate that the call went well. China has bought more American agricultural products, as reported by the USDA this week.
Traders and investors are also more optimistic this week amid a sharp recovery in Nymex crude oil futures prices as the US and European economies begin to reopen. Nymex futures are higher early today and are trading around $ 24.00 a barrel. Less than two weeks ago, June crude futures traded well below $ 10.00 a barrel. Many commodity futures markets have noted that their sector leader, crude, has recently experienced such a strong recovery, as this implies that other commodity markets may also have bottomed out or are about to succeed.
Other US economic reports released on Friday include monthly wholesale trade.
Technically, gold bulls have the overall short-term technical advantage amid an upward trend on the daily bar chart. Bulls’ next bullish price target is to produce a futures contract in June that outperforms strong resistance at the April high of $ 1,788.80. Bears’ next short-term price cut target pushes futures prices under solid technical support to $ 1,666.20. The first resistance is observed at the highest of the day at $ 1,735.50 then at $ 1,750.00. The first support is seen at $ 1,708.80 then at $ 1,700.00. Wyckoff Market Assessment: 7.0
Silver bulls on July have the slight overall short-term technical advantage. The next target for higher silver bull prices is to close prices above solid technical resistance at the April high of $ 16.505 an ounce. The next breakout price target for the bears is to close prices below solid support at $ 14.00. The first resistance is observed at the high of $ 15.94, then at $ 16.00. The next support is seen at an overnight low of $ 15,545 then at $ 15.25. Wyckoff’s market rating: 5.5.
Warning: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has done everything possible to guarantee the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to exchange goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept guilt for loss and / or damage resulting from the use of this publication.