Gold Ends Weaker In Quieter Trading; U.S. Jobs Data On Deck

(Kitco News) - Gold ended a quieter session slightly lower Thursday, in another narrow, two-sided trading affair. Some fresh economic news Thursday failed to significantly move the precious metals markets. August Comex gold was last down $1.70 an ounce at $1,213.00. July Comex silver was last up $0.098 at $16.02 an ounce.

Trading was more subdued Thursday, ahead of the Friday U.S. jobs report for May, which is arguably the most important piece of economic data of the month. The key non-farm payrolls number is forecast to come in at up 160,000.

The U.S. ADP national employment report for May was released Thursday morning and came in at up 173,000, which was in line with expectations and had minimal markets impact.

The European Central Bank monetary policy meeting on Thursday concluded with no change in interest rates. However, the ECB has warned in recent weeks that it could make further monetary policy stimulus moves to try to revive the Euro zone economy.  

The OPEC oil cartel met in Vienna, Austria Thursday, with no agreement reached to cut production. Most market watchers did not expect any meaningful results coming out of the meeting. Heavyweights Iran and Saudi Arabia do not like each other, which makes any agreement down the road unlikely.

Technically, August gold futures prices closed near the session low today. The gold bulls and bears are on a level overall near-term technical playing field as bulls have faded badly recently. Prices are in a four-week-old downtrend on the daily bar chart. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,250.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at 1,200.00. First resistance is seen at today’s high of $1,220.00 and then at $1,225.00. First support is seen at $1,207.70 and then at $1,200.00. Wyckoff’s Market Rating: 5.0

July silver futures prices closed near mid-range and saw tepid short covering after hitting a seven-week low on Wednesday. The silver market bears have the slight overall near-term technical advantage. A four-week-old downtrend is in place on the daily bar chart. Silver bulls’ next upside price breakout objective is closing 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 $15.25. First resistance is seen at this week’s high of $16.245 and then at $16.50. Next support is seen at this week’s low of $15.83 and then at $15.50. Wyckoff's Market Rating: 4.5.

July N.Y. copper closed down 50 points at 206.80 cents today. Prices closed near mid-range today. The 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 220.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at 200.00 cents. First resistance is seen at 208.95 cents and then at this week’s high of 211.60 cents. First support is seen at this week’s low of 205.15 cents and then at the May low of 203.80 cents. Wyckoff's Market Rating: 2.5.

By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com