(Kitco News) – Gold and silver prices are moderately lower in early US trading on Thursday, with some higher gains from short-term futures traders and investing risk appetite overnight in the US – Trade talks with China are due to resume in October. On Wednesday, gold futures reached a 6.5-year high and silver futures reached a three-year high. December gold futures last dropped $ 1
The August ADP National Employment Report just published 195,000 jobs, significantly higher than the estimated 140,000 jobs.
With all activity in a shortened US trading week, the market almost forgot about the Employment Situation Report in August from the Ministry of Labor, released Friday morning. The main component of the payroll reports in the report is expected to show a profit of 150,000 in August.
Asian and European stock markets mostly higher overnight. US stock indexes are aiming for solidly higher openings when the New York session begins. Traders and investors around the world received another boost in sentiment on Thursday when the Chinese Ministry of Commerce said trade talks with the US would begin in Washington in October. US sales officials have confirmed that high-level negotiations will take place at this time. Earlier this week, there were China-US concepts. the recent commercial war has escalated. For months now, this situation has fluctuated from one day to the next, depending on the latest rhetoric coming from the two largest economies in the world. Most market watchers are not optimistic that a US-China trade deal will be reached this year.
While the markets were released on Wednesday, Hong Kong leader withdrew from discussion a proposed law that would allow Hong Kong citizens to be extradited to mainland China for criminal investigations, reported Thursday, saying more protests are planned in the coming days. At present, it seems doubtful that Hong Kong leader's reversion to extradition will be sufficient to quell civil unrest.
Meanwhile, the Brexit burden continues as the October deadline for Britain's deal with the European Union approach. Prime Minister Boris Johnson wants to reach the "soft" Brexit without prolonging time. However, this week's votes from Parliament appear to have defeated his 'hard' Brexit position – at least for now. The news boosted the British pound from its 34-year low against the US dollar earlier this week.
Today, key "foreign markets" see Nymex crude oil prices close to stable, trading around $ 56.00 a barrel. The US dollar index is lower with a normal fall correction after reaching a 27-month high on Monday.
A very heavy list of US economic data to be released on Thursday includes the weekly unemployment report, Challenger job cuts report, ADP national employment report, productivity and cost reviews, ISM report for non-manufacturing businesses, US and PMI services for global services, monthly chain store sales, weekly Liquid Energy Inventory and producer shipments and inventories.
Technically, gold bulls have a stable overall short-term technical advantage. A quarterly upward trend exists on the daily chart. The next price target for the bulls is to close futures in October above solid resistance at $ 1,600.00. The next short-term bear breakout goal is to push futures prices in December under solid tech support at $ 1500.00. The first resistance was observed at the overnight of $ 1561.90, then this week at 1,566.20. The first support is seen at the low level of $ 1542.60, and then at $ 1535.00. Wyckoff Market Estimate: 8.0
December futures for silver futures have the strong overall short-term technical advantage. Prices are on the accelerating quarterly rise in the daily bar chart. The next goal of the Silver Bulls is to close prices above solid technical resistance at $ 20.00 an ounce. The next goal to reduce bear prices is to close prices below solid support at this week's low price of $ 17.64. The first resistance was seen at the highest this week at $ 19.75, and then at $ 20.00. The following support is seen at $ 19,175 overnight and then at $ 19.00. Wyckoff's Market Rating: 8.5.
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