US Gold futures finished pit trade with gains Thursday tapping a 6 month high early in the session.
The monthly meeting of the European Central Bank did produce the widely expected, fresh EU monetary stimulus plan, in which the ECB will buy EU countries' bonds.
Gold and silver prices were trading solidly higher early Thursday, in anticipation of the official ECB press conference announcing the initiative.
But the precious metals prices faded from their daily highs on some stronger-than-expected US economic data out Thursday morning.
Dec Gold last traded + 10.70 at 1,704.40 oz.
Spot Gold was last quoted + 9.10 at 1,703.00 oz.
Dec Comex Silver last traded + 0.346 at 32.685 oz.
Both metals pared their gains on news that the ADP US employment report showed a stronger-than-expected rise of 201,000 in August.
Weekly US jobless claims also declined in the latest reporting week.
Friday the important US employment report for August is released. Many believe a weak jobs report on Friday would open the door wide for a fresh US monetary stimulus announcement by the US Federal Reserve at its FOMC meeting in 2 wks.
The forecast for the Key non-Farm payrolls figure of the jobs report is up 125,000. But, the strong ADP jobs figure Thursday has many wondering if the Friday jobs report will be stronger than estimated.
Overnight news: there was more weak economic data released from Europe Thursday. The collective Eurozone GDP fell by 0.2% in Q-2, for an annualized decline of 0.7%. Also, EU consumers reduced their purchases by 0.2% in Q-2. EU businesses cut their spending by 0.8% in the same time period. And the Bank of England left its monetary policy unchanged.
The USD index was weaker in late trading Thursday, but losses were limited by the stronger US economic data released Thursday morning. The "Greenback Bears" still have the near-term technical advantage as a 6-wk-old downtrend line is in place on the daily chart.
Crude Oil prices were firmer Thursday, on the ECB stimulus package. Crude Oil Bulls have the near-term technical advantage.
WTI Crude Oil 95.47 + 0.11 ( 0.12%)
These two market were in a Bull mode for the precious metals Thursday. The precious metals markets will continue to look closely at how these 2 Key markets"trade daily.
The London PM Gold fixing is 1,701.00 vs the prior PM fixing at 1,690.00.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.