(Kitco News) - Gold ended the U.S. day session near steady in a choppy, two-sided trading day Thursday. Short covering and position evening ahead of what is arguably the most important U.S. economic report of the month-the U.S. employment report from the Labor Department on Friday morning-were featured. December Comex gold was last down $0.90 at $1,114.30 an ounce. December Comex silver was last down $0.018 at $14.50 an ounce.
Gold prices moved modestly higher in late-morning dealings, following a slight miss to the downside on the latest U.S. ISM manufacturing report. That report helped push the U.S. stock indexes solidly lower on the day, after they were posting early gains. However, gold’s gains eroded by midday as other U.S. economic data released Thursday was upbeat.
Traders are looking ahead to Friday’s U.S. jobs report for September. The key non-farm employment figure is expected to be up 200,000 in September, versus a miss to the downside of up 173,000 in the August report. A strong reading in non-farm jobs—up 200,000 or higher—would likely pressure gold as it would fall into the camp of the U.S. monetary policy hawks who want the Fed to raise the Fed funds rate yet this year.
In other news Thursday, China’s official manufacturing purchasing managers’ index (PMI) rose to 49.8 in September, which was above expectations. The private firm Caixin reported its China PMI was down slightly, at 47.2 in September and also at a six-year low. Meantime, the Euro zone’s September manufacturing PMI came in at 52.0, which was right in line with market expectations. A number below 50.0 suggests contraction in the sector; above 50.0 suggests growth.
A recovery in the share price of major commodity trader and producer Glencore late this week has somewhat assuaged the raw commodity sector. Earlier this week the Swiss firm’s shares fell nearly 30% on fears that slumping raw commodity prices would sink the company.
The London P.M. gold fix today was $1,119.00 versus the previous London A.M. fixing of $1,114.20.
Technically, December gold futures prices closed near mid-range today after poking to a two-week low overnight. Gold bears have the firm overall near-term technical advantage and have gained momentum this week. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,141.50. Bears' next near-term downside price breakout objective is closing prices below solid technical support at the September low of $1,097.70. First resistance is seen at today’s high of $1,118.50 and then at Wednesday’s high of $1,127.70. First support is seen at today’s low of $1,110.30 and then at $1,100.00. Wyckoff’s Market Rating: 2.0
December silver futures prices closed near mid-range and hit another two-week low today. Silver bears have the solid overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the September high of $15.435 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the August low of $13.95. First resistance is seen at $14.75 and then at $15.00. Next support is seen at today’s low of $14.43 and then at the September low of $14.245. Wyckoff's Market Rating: 2.0.
December N.Y. copper closed down 385 points at 230.25 cents today. Prices closed near the session low on a corrective pullback from Wednesday’s big gains. Copper bears have the overall near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at the September high of 249.30 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the August low of 220.25 cents. First resistance is seen at 235.00 cents and then at today’s high of 237.65 cents. First support is seen at today’s low of 229.70 cents and then at 227.50 cents. Wyckoff's Market Rating: 2.0.
By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
Follow me on Twitter @jimwyckoff
