May 29, 2023

The price of gold skyrocketed after that

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(Kitco News) – Gold and silver prices are sharply higher early Friday in the United States, boosted by a U.S. jobs report that landed at the core of market expectations. The price of silver rose to a three-week high. The sharp increase in crude oil prices and the weakening of the US dollar are also on the rise in non-metals market forces today. The short margin of futures traders is on display in both precious metals markets at the end of the trading week. December gold was last up $28.40 at $1,659.60 and December silver was up $0.785 at $20.22.

The just-released US Labor Department monthly employment report for October showed non-farm payrolls increased by 261,000, beating the 205,000 expected and compared to the 263,000 gain in the September report. Gold added solid overnight gains after the report was released as analysts said it was a Goldilocks report that is “neither too hot nor too cold” — meaning it’s not too strong to spur the Federal Reserve to hike. aggressive in tightening its monetary policy, nor is it too weak to cause more concern about a recession in the US economy.

Global stock markets were mostly higher overnight. U.S. stock indexes are headed for higher opens as the New York intraday session begins, on the back of bounces correcting selling pressure from the previous three sessions and as U.S. jobs numbers hit the “sweet spot” of market expectations.

In the overnight news, the September producer price index in the euro area rose by 41.9% from the previous year, which was close to expectations. Rising energy costs in Europe are driving up the PPI sharply.

Silver bulls have been beating gold bulls lately. One reason may be the growing demand in India. Broker SP Angel said in an email today: “Silver India’s insatiable appetite for silver is eating into global stockpiles. Analysts expect India’s silver consumption to rise more than 80% this year. India’s silver buying was hit hard in the two years of covid, but demand for 2022 purchases has increased significantly. Traders report From inventory levels in London and Hong Kong as pent-up demand feeds the market.”

In key external markets, the US dollar index is down today Thursday following a corrective pullback from a strong rally. Nymex crude oil prices are sharply higher, trading around $91.50 a barrel. The yield on the US 10-year Treasury bond is about 4.2%.

Other US economic data to be released on Friday includes the global services purchasing managers’ index.

Technically, the bears in gold futures have a solid overall near-term technical advantage. The bulls’ next upside price objective is to produce a near-fixed resistance above $1,700.00. The Bears’ next near-term bearish objective is to drive futures prices below solid technical support at $1,600.00. First resistance is seen at this week’s high at $1,673.10 and then at $1,679.40. First support is at $1,650.00 and then at the overnight low at $1,631.10. Wyckoff Market Rating: 2.0

Live 24 hour silver chart [ Kitco Inc. ]

Silver bulls have regained general short-term technical advantage. In the daily bar graph, a varying upward trend can be observed. The silver bulls’ next upside price objective is to close above solid technical resistance at the October peak at $21.31. The next slow target for the bears is to close prices below the fixed support at $18.00. First resistance is seen at $20.50 and then at $21.00. The next support is $20.00 and then the overnight low at $19.425. Wyckoff Market Rating: 6.0.

Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect his own Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; However, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not a solicitation to make exchanges in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for any loss and/or damage arising from the use of this publication.

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