Modest price advances for Gold, silver; U.S. ADP jobs report a bust – Kitco NEWS

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(Kitco News) - Gold and silver futures prices a bit higher again in early U.S. trading Wednesday, on continued short covering and perceived bargain buying. A slumping U.S. dollar index and crude oil prices hitting seven-year highs this week are bullish outside market forces for the metals markets. April gold futures were last up $3.70 at $1,805.40 and March Comex silver was last up $0.14 at $22.735 an ounce.

The U.S. data point of the day is the ADP national employment report for January, which came in at down 301,000 jobs. The report was forecast to show a gain of 200,000 jobs. Markets saw no major reaction to today’s report. The ADP report is the precursor to the more important Labor Department employment situation report that is due out Friday morning. That report is also expected to be downbeat, with its key non-farm payrolls number expected to come in up only 150,000 jobs in January.

Global stock markets were mostly higher overnight. U.S. stock indexes are pointed toward firmer openings when the New York day session begins. The U.S. stock index bulls are having a very good week and are gaining strength and momentum again. Generally good U.S. corporate earnings reports are boosting trader and investor confidence this week. China’s markets are closed all week for the Lunar New Year holiday.

In overnight news, the Euro zone consumer price index for January came in at up 5.1%, year-on-year, compared to a forecast of up 5.0%.

The key outside markets today see crude oil prices a bit lower and trading around $88.00 a barrel. Traders will closely monitor an OPEC-plus meeting that began today. The cartel is expected to raise its collective oil production level. The U.S. dollar index is solidly lower today. The U.S. Treasury 10-year note yield is presently fetching 1.797%.

Other U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey and the weekly DOE liquid energy report.

Technically, the April gold futures bulls and bears are on a level overall near-term technical playing field. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at $1,825.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the December low of $1,755.40. First resistance is seen at this week’s high of $1,809.70 and then at $1,820.00. First support is seen at the overnight low of $1,794.60 and then at this week’s low of $1,785.80. Wyckoff’s Market Rating: 5.0

March silver futures bears have the firm overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $23.50 an ounce. The next downside price objective for the bears is closing prices below solid support at the December low of $21.41. First resistance is seen at this week’s high of $23.06 and then at $23.48. Next support is seen at the Tuesday’s low of $22.405 and then at last week’s low of $22.15. Wyckoff’s Market Rating: 3.5.