Gold and silver prices are going up early in the U.S. trading session on Friday. This happened right after a report came out saying that the U.S. job market isn’t doing as well as expected. People who want the Federal Reserve to lower interest rates, called “monetary policy doves,” are happy about this.
In June, gold went down a little to $2,309.30, while silver in July went down to $26.535.
The report for April from the Labor Department showed that the number of new jobs (non-farm jobs) went up by 175,000. That’s lower than what experts thought, which was around 240,000 new jobs. In March, the number of new jobs was revised to 315,000.
The unemployment rate in April went up a bit to 3.9%, while experts expected it to stay the same at 3.8%. Some analysts and people watching the market say this report is just right—not too good and not too bad. This might mean that the Federal Reserve could decide to lower interest rates sometime this year, but only if inflation goes down more.
This report is exactly what people who buy gold and silver wanted to hear.
Last night, stock indexes in Asia and Europe had mixed results. But when the stock market in New York opens, it’s expected to do well, thanks to the “Goldilocks” U.S. jobs report, meaning it’s neither too good nor too bad.
In other markets, the U.S. dollar lost value after the jobs report. Crude oil prices are up, trading at around $79.25 per barrel. The yield on U.S. Treasury bonds, specifically the 10-year one, is at 4.477%, which is lower than before the jobs report was released.
Later today, we’re expecting more economic data from the U.S., including information about the services sector and a report on business services.
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In simple terms, the people who think gold prices will go up (bulls) have a bit of an advantage for now, but it’s not as strong as before. On the daily chart, where we track gold prices, the upward trend has stopped, and now prices are starting to go down a bit.
The next goal for the bulls is to make sure that in June, gold prices close higher than a certain point, which is $2,364.40. But if the people who think gold prices will go down (bears) get their way, they want to push prices below another important point, which is $2,200.00.
Right now, the first point where gold prices might stop going up is at $2,336.10, and then at $2,350.00. If prices start dropping, the first point where they might stop going down is at $2,303.20, and then at $2,291.70, which is the lowest point gold prices have reached this week.
Overall, according to a rating system called Wyckoff’s Market Rating, the situation is at 6.5, which means it’s kind of neutral.
In simple terms, both the people who think silver prices will go up (bulls) and those who think they’ll go down (bears) are kind of on an even playing field for now.
On the daily chart, which shows the ups and downs of silver prices, there’s been a downward trend for about three weeks.
The next goal for the silver bulls is to make sure that in July, silver prices close higher than a certain point, which is $28.00. But if the people who think silver prices will go down (bears) get their way, they want to push prices below another important point, which is $25.00.
Right now, the first point where silver prices might stop going up is at $27.455, and then at $27.75. If prices start dropping, the first point where they might stop going down is at $26.61, and then at $26.255, which is the lowest point silver prices have reached this week.
Overall, according to a rating system called Wyckoff’s Market Rating, the situation is right in the middle at 5.0, which means it’s neither really good nor really bad for either side.
