Gold and Silver
Gold futures on the COMEX Division of the New York Merc retreated Friday as unexpected rally in US employment sector reduced demands for Gold investment.
The most active Gold contract for Feb delivery dipped 4.0 oz, or 0.3%, to end pit trade at 1349.0.
The US Labor Department reported that unemployment rate fell to 9% in January, the lowest since April 2009, in comparison with expectation of 9.5%, and the nonfarm payrolls rose by 36,000 jobs.
Gold retreated from a 2 wk high at 1353 hit Thursday. An improving labor market would present a downside risk for metal prices on the prospect that the US Federal Reserve might tighten monetary policy, said a Gold trader. Shayne and I believe that is unlikely, as the US Fed's liquidity faucet is wide open now and into the future.
The improving employment sector also helps strengthen the USD's value. The Greenback advanced for a 3rd sraight day against the Euro and Yen in the longest stretch of gains in 4 weeks, which also added the negative tone.
The Gold price has dropped nearly 5% so far this year. Silver closed at 29.145, + 0.417 or 1.43%, Apr
Platinum gained 1.7, or 0.1%, to 1845.8 oz.
WTI Crude Oil price fell Friday on he US Labor Department report that the economy added fewer jobs in January than economists forecast, fueling concern about a drop in demand in the World's biggest Oil-consuming country. (see the Jobs report discussion above)
And US Gasoline stockpiles rose to the highest level in almost 18 yrs as demand decreased, according to an Energy Department report on February 2. The US rose against other major currencies, helping Crude Oil's decline.
Light, Sweet Crude for Mar delivery fell 1.51, or 1.66% to 89.03 bbl on the New York Merc.
The Overall Technicals
Comex Gold (GC)
Gold's recovery from 1309.1 resumed Friday and the intra-day bias is just a bit on the Northside, looking for a further rise.
But, that said I expect any upside to be limited by 61.8% retracement of 1424.4 to 1309.1 at 1380.4 and bring on a resumption of the decling.
A break below 1325.4, the minor support, will turn the bias back to the Southside for a test of 1309.1 and below, but sustained trading above 1380.4, a Key fibo mark will turn focus back to 1424.4 the high next.
The Big Picture: the current action suggests that a medium term Top formed at 1432.5 after Gold failed to tap 2 important projection targets, 161.8% projection of 931.3 to 1227.5 from 1044.5 at 1449.6 and 100% projection of 253 to 1033.9 from 681 at 1462.
Note: the whole up-trend from 681, the Y 2008 low might have finished a 5 wave sequence already. The fall from 1432.5 might now be in progress towards he 1044.5/1227.5 support Zone.
On the Upside: a clear break of 1432.5 is needed to confirm the up-trend's resumption.
Barring that, and even in case of Strong rebound, I expect another fall to extend the consolidation/correction from 1432.5. Stay tuned...