Gold, silver gain as USDX pulls back ahead of US jobs data

(Kitco News) - Gold and silver prices are solidly higher and near their daily highs in midday U.S. trading Thursday. The metals saw buying support from a weaker U.S. dollar index on this day. December gold futures were last up $20.10 at $1,915.60 and December Comex silver was last up $0.686 at $24.17 an ounce.

Traders and investors are now awaiting the U.S. economic data point of the week, which is Friday morning’s monthly jobless report for September from the Labor Department. The key non-farm payrolls number is forecast at up 875,000 and the unemployment rate is forecast at 8.2%. A miss from forecasts would likely move the markets significantly.

Global stock markets were mixed overnight. U.S. stock indexes are higher at midday. Many Asian stock markets were closed for a holiday, while the Tokyo Stock Exchange had to halt stock trading due to technical problems. The stock and financial markets are half-way through what can be turbulent months of September and October. A glance across the markets spectrum shows no serious shocks or major volatility during September, although some markets did experience moderate rises in volatility—but also which can be considered not unusual. The U.S. stock indexes did get a bit wobbly during September but prices now appear to have stabilized.

Slight hopes for a new U.S. financial stimulus package for American citizens and businesses faded Wednesday after the Democrats and Republicans had a flurry of discussions earlier this week. Many doubt any plan will be agreed upon before the U.S. elections in early November.

The important outside markets early today see the U.S. dollar index weaker amid choppy trading this week. Nymex crude oil prices are sharply down and trading around $38.25 a barrel. Meantime, the yield on the U.S. Treasury 10-year note is trading around 0.68% today.

Technically, December gold futures bulls have the overall near-term technical advantage. However, a six-week-old downtrend is still in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at $1,950.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the September low of $1,851.00. First resistance is seen at $1,920.00 and then at $1,950.00. First support is seen at $1,900.00 and then at the overnight low of $1,890.00. Wyckoff's Market Rating: 6.5

December silver futures bulls have the overall near-term technical advantage. However, prices are still trending down on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $25.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the September low of $21.81. First resistance is seen at this week’s high of $24.545 and then at $25.00. Next support is seen at today’s low of $23.325 and then at $23.00. Wyckoff's Market Rating: 6.0.

December N.Y. copper closed down 1,545 points at 287.80 cents today. Prices closed near the session low today, hit a four-week-low and scored a big and bearish “outside day” down on the daily bar chart. The copper bulls still have the overall near-term technical advantage but faded badly today. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the September high of 312.10 cents. The next downside price objective for the bears is closing prices below solid technical support at the August low of 279.60 cents. First resistance is seen at 290.00 cents and then at 295.00 cents. First support is seen at today’s low of 286.40 cents and then at 285.00 cents. Wyckoff's Market Rating: 6.5.