Gold and silver prices are trading near unchanged levels at midday Thursday in the US. A slight profit-taking after gains earlier this week was met by bulls buying on dips to lift prices back to near stable levels. Short-term traders have likely remained largely on the sidelines ahead of Friday's US jobs report. April gold rose $0.80 last traded at $2,925.20. May silver prices rose $0.136 last traded at $33.27.
The data highlight of the week in the US will be the Labor Department's employment report, due out Friday morning for February. The key nonfarm payrolls figure is expected to rise by 170,000, up from January's 143,000 increase.
US stock indexes are solidly lower at midday. Risk aversion has risen again today amid the specter of a tit-for-tat tariff war between major countries that could push the global economy into recession. David Morrison of Trade Nation said in an email today: “President Trump has called everyone's bluff and said he is willing to endure some pain to get what he wants. Tariffs may have been the trigger for the last recession, but they are not the whole story. Speculation is growing that the US could enter a recession this year. GDP growth forecasts have been slashed, while inflation remains well above the Federal Reserve's 2% target. The latest economic data released has been disappointing, particularly consumer confidence, retail sales, and weekly unemployment claims.
In other news, the European Central Bank cut its key interest rate by 0.25%, as expected.
Major foreign markets today see the US dollar weakening and hitting another four-month low. Nymex crude oil futures prices are down slightly, trading around $66.25 per barrel. The benchmark 10-year US Treasury bond yield currently stands at 4.30%.
Technically, bulls in April gold futures have a solid overall short-term technical advantage. The bulls' next upside price target is to produce a close above solid resistance at the contract high of $2,974.00. The bears' next short-term downside price target is to push futures prices below solid technical support at last week's low of $2,844.10. The first resistance is seen at this week's high of $2,941.30 and then at $2,950.00. The first support is seen at $2,900.00 and then at Tuesday's low of $2,892.50. Wyckoff Market Rating: 8.0.
May silver futures bulls have a slight overall short-term technical advantage. The next bullish price target for silver bulls is to close prices above strong technical resistance at February's high of $34.56. The next bearish price target for bears is to close prices below strong support at $31.00. The first resistance is seen at $33.50 and then at $34.00. The next support is seen at Wednesday's low of $32.395 and then at $32.00. Wyckoff Market Rating: 5.5.
Jim Wyckoff, Kitco