Strong pressure on gold and silver prices after strong US jobs data.

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(Kitco News) – Prayed Y silver prices are solidly lower in early US trading on Friday, on the back of a surprisingly strong US jobs report that may force the Federal Reserve to be even more aggressive in its tighter monetary policy. The US dollar index and US Treasury yields spiked on the jobs news, which in turn helped push gold and silver prices lower. October gold futures last fell $21.70 to $1,774.70. September Comex silver futures fell $0.507 to $19,615 an ounce.

This morning’s US jobs report for July showed a very strong increase of 528,000 in non-farm payroll job growth. A profit of around 260,000 was expected. The June jobs report showed an increase of 372,000 nonfarm jobs. The headline unemployment rate in July fell to 3.5% from 3.6% in June. After today’s strong jobs numbers, “the Fed’s dovish turn is not going to happen,” said a market commentator on Bloomberg radio.

Global stock markets were flat or slightly higher overnight. US stock indices head for lower openings as the New York daily session begins, and sold off after the strong Non-Farm Payrolls number.

The market is still a bit unsettled amid escalating tensions between the US and China, the world’s two largest economies, after the visit of US House Speaker Nancy Pelosi , to Taiwan this week. China is conducting aggressive military exercises in Taiwan and has also announced sanctions against Nancy Pelosi and her family. US Secretary of State Blinken said China’s military exercises near Taiwan are a worrying escalation.

Key outside markets today see Nymex Crude Oil prices almost flat and trading around $88.50 per barrel. Crude oil hit a 4.5-month low on Thursday. The US dollar index is sharply higher in early US trading and made a big move higher after the jobs report. The yield on the US 10-year Treasury note is running at around 2.85%.

Other US economic data to be released on Friday includes the consumer credit report.

Technically, October gold futures bears have the overall short-term technical advantage. However, there is still a bullish price trend brewing on the daily bar chart which suggests that the market is bottoming out. The next bullish price objective for the Bulls is to produce a close above solid resistance at $1,850.00. The bears’ next short-term downside price objective is pushing futures prices below solid technical support at the July low of $1,686.30. The first resistance is seen at this week’s high of $1,801.00 and then at $1,825.00. First support is seen at Thursday’s low of $1,769.50 and then this week’s low of $1,759.70. Wyckoff Market Rating: 3.0

24 hour live silver chart [ Kitco Inc. ]

September silver futures bears have the overall short-term technical advantage. However, recent price gains suggest that the market has bottomed out. The next bullish price objective for the Silver Bulls is to close prices above solid technical resistance at $21.00. The next downside price objective for the bears is to close prices below the solid support at $19.00. The first resistance is seen at $20.00 and then at this week’s high of $20.51. The next support is seen at $19.40 and then at $19.00. Wyckoff Market Rating: 3.0.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has gone to great lengths to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange of commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage arising from the use of this publication.

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