US Gold prices sold off sharply tapping a 2-month low Friday. The US Jobs report drove the USD index to a 7 wk high, helping to tank the raw commodity markets, including the precious metals.
Dec Gold futures prices fell well below important technical support at the 1,700.00 mark, which triggered sell-stop orders driving prices further South.
The Gold and Silver Bears gained the Southside near-term technical momentum Friday.
Dec Gold last traded down 38.90 at 1,676.60 oz.
Spot Gold was last quoted down 38.70 at 1,676.75 oz.
Dec Comex Silver last traded down 1.323 at 30.935 oz.
The Key non-farm payrolls component of the US jobs report Friday came in at up 171,000 in October when it was forecast to come in at up 125,000.
The September non-farm payrolls figure was also revised up by around 30,000. The market perceived the latest US employment report as a good. Friday’s jobs report could signal the light at the end of the tunnel of all the monetary stimulus measures that have been implemented worldwide the past 4 yrs. Such action is theoretically Bearish for the precious metals markets if one believes that all the past monetary stimulus measures have been Bullish for the metals. But, on the other side of that coin is the idea that if world economies are indeed on the upswing then worldwide demand for raw commodities will increase.
In European trading stocks fell overnight and the Euro currency was pressured following some fresh economic news out of Spain showing its manufacturing sector weakened further in October. It was also reported Friday that the overall European Union manufacturing sector continued to contract in October for the 15th straight month, with a PMI reading of 45.4. Recent economic data coming from the European Union paints a grim economic picture for the EU in the coming months.
Meantime, Hong Kong’s Hang Seng stock index marked a 15-month high Friday, as Asian markets reacted to the improving US economic data coming out of the US Thursday.
The USD index traded higher Friday and hit a 7 wk high, boosted mostly by the stronger US jobs data and on Short covering. The USD Bears still have the overall near-term technical advantage but the Bulls have regained technical momentum late this week.
Nymex Crude Oil prices were sharply lower Friday and closed at a Bearish weekly low close.
Crude Oil (WTI) 84.86 -2.23 (-2.56%)
The Crude Oil Bears have the overall near-term technical advantage now
These 2 Key outside markets continue to influence Gold and silver prices daily
The London PM Gold fixing was 1,685.00 Vs the prior PM fixing at 1,716.25.
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.
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