Gold Gets A Little Help From ADP Data, Outside Markets

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(Kitco News) - Gold prices ended the U.S. day session with modest gains Thursday. A slightly downbeat U.S. ADP jobs number aided the precious metals markets bulls just a bit today. The key “outside markets” were also in a bullish daily posture for the metals, as the U.S. dollar index was solidly lower and crude oil prices were higher. August Comex gold was last up $1.80 an ounce at $1,223.40. September Comex silver was last up $0.079 at $15.975 an ounce.

The ADP national employment report, which is a precursor to the more important Labor Department Employment report that comes out on Friday morning, showed a jobs number of up 158,000 in June, which was a slight miss to the downside. An ADP jobs reading of up 180,000 was expected. The non-farm jobs number is Friday morning’s employment report is also expected to see a rise of around 180,000 in June. Markets could become volatile in the aftermath of Friday morning’s jobs report, as it is arguably the most important U.S. economic report of the month.

World geopolitics is back close to the front burner of the marketplace this week, and that’s provided just a bit of safe-haven demand for gold. North Korea now has an intercontinental ballistic missile that could reach Alaska or Hawaii. President Trump says he will deal with the North Koreans but so far has not done much. Trump’s options are very limited, short of direct military action that could imperil tens of thousands of people, including thousands of U.S. troops stationed in South Korea. Trump and Russian President Vladimir Putin late this week meet face-to-face for the first time ever.

The key “outside markets” on Thursday saw Nymex crude oil futures prices higher on a good corrective bounce from Wednesday’s solid losses. The oil market bears still have the overall near-term technical advantage. Meantime, the U.S. dollar index was lower today and the greenback bears have the firm overall near-term technical advantage.  The precious metals bulls have been frustrated that the down-trending U.S. dollar index in recent weeks has not provided much upside price boost for the metals.

Technically, August gold futures prices closed nearer the session low. The gold bears still have the firm overall near-term technical advantage as 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 $1,229.50 and then at $1,240.00. First support is seen at this week’s low of $1,216.50 and then at 1,210.00. Wyckoff's Market Rating: 3.0

September silver futures prices closed near mid-range on tepid short covering after hitting a 14-month low on Wednesday. The silver bears have the solid overall near-term technical advantage. Prices are in a four-week-old downtrend 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 $15.00. First resistance is seen at Wednesday’s high of $16.19 and then at $16.28. Next support is seen at this week’s low of $15.85 and then at $15.50. Wyckoff's Market Rating: 2.5.

September N.Y. copper closed up 20 points at 266.15 cents today. Prices closed near mid-range today in quiet trading. The copper bulls have the overall near-term technical advantage. Prices are in a two-month-old uptrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the February high of 284.95 cents. The next downside price objective for the bears is closing prices below solid technical support at the June low of 252.90 cents. First resistance is seen at Wednesday’s high of 269.15 cents and then at the June high of 271.85 cents. First support is seen at this week’s low of 264.35 cents and then at 262.00 cents. Wyckoff's Market Rating: 6.0.