Gold celebrates softer US economic data

Gold and silver prices rose during Tuesday’s lunchtime US trading session, with gold reaching a three-week high and silver reaching a four-week high. Fresh purchasing activity in the precious metals was sparked by reports on the consumer confidence index and the US jobs turnover data (JOLTS), both of which were substantially weaker than anticipated.

After the data, the US dollar index fell, and US Treasury yields decreased. The US monetary policy doves, who believe that the Fed has raised interest rates sufficiently to effectively slow down US economic growth, were represented by both reports. A significant week of US economic statistics began this day. December silver was up $0.51 at $25.115 while December gold was last up $17.30 at $1,963.90.

The worse US GDP statistics has also contributed to the higher noon US market indexes. News on Monday that China had lowered a significant tax rate and promised to support its capital markets helped the Asian and European stock markets early this week.

The Labour Department’s Friday employment status report for August is the highlight of the busy US data week. The important non-farm payrolls statistic is anticipated to increase by 170,000, down from the July report’s increase of 187,000.

The US dollar index is down today on the major international markets. The price of a barrel of crude oil on the Nymex exchange is now trading at about $80.50. The current yield on the standard US Treasury 10-year note is 4.131%.

The price of December gold futures reached a three-week high. Short covering and shopping for deals were highlighted. Overall, bears continue to hold the technical edge in the near term. On the daily bar chart, a four-week downturn has been reversed, and prices are now trending upward. The next price goal for the bulls is to close above the strong resistance level of $2,000.00. The next short-term downside price target for bears is to drive futures prices below strong technical resistance, which is the $1,913.60 low from August. The first point of resistance is $1,975.00, followed by $1,985.00. Support can be found at $1,950.00 first, followed by this week’s low of $1,941.10.

Prices for silver contracts for December reached a four-week high today. In the short term, silver bulls now possess the technical edge. The daily bar chart shows that the price trend is upward. The next upward price target for silver bulls is for prices to close over strong technical resistance at the July high of $25.82. The bears’ next downward price target is for prices to close below $23.50, a level of strong support. The first point of resistance is at $25.50, followed by $25.82.