Gold Ends Down On Profit Taking, Upbeat U.S. Jobs Report

July 3, 2014

Los Angeles (July 3)  Gold futures ended the U.S. day session lower but up from the daily low Thursday. The market saw profit-taking from recent gains and also saw pressure from a stronger-than-expected U.S. employment report for June. August Comex gold was last down $10.50 at $1,320.40 an ounce. Spot gold was last quoted down $7.60 at $1,320.25. December Comex silver last traded down $0.165 at $21.199 an ounce.

The key U.S. Labor Department employment situation report for June showed non-farm payrolls increased by a higher-than-expected 288,000. The important jobs number was expected to come in at up 215,000. However, Wednesday’s hotter-than-expected reading from the ADP national employment report (up 281,000) made many suspect the Labor Department’s non-farm jobs number would come in stronger-than-forecast.

The U.S. jobs report gives the Federal Reserve more information in its quest to determine the best monetary policy. There is presently debate among market watchers on whether the Fed should begin to ratchet up interest rates. However, recent comments from Fed officials, including Fed Chair Janet Yellen on Wednesdsay, suggest most still favor keeping U.S. interest rates very low for some time to come. Thursday’s upbeat U.S. jobs data does fall into the favor of the monetary policy hawks, however.

Also, the European Central Bank held its monthly monetary policy meeting Thursday. No monetary policy moves occurred and none were expected after last month’s fresh easing measures.

Many U.S. markets closed early Thursday, in observance of the U.S. Independence Day holiday that gives the U.S. a three-day weekend. U.S. markets are closed on Friday.

The London P.M. gold fix was $1,317.50 versus the previous P.M. fixing of $1,322.50.

Technically, August gold futures prices closed near mid-range Thursday. Prices earlier this week hit a 3.5-month high. Gold market bulls still have the overall near-term technical advantage. Prices are in a four-week-old uptrend on the daily bar chart, but now just barely. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at this week’s high of $1,334.90. Bears' next near-term downside breakout price objective is closing prices below solid technical support at last week’s low of $1,305.40. First resistance is seen at Thursday’s high of $1,329.00 and then at $1,334.90. First support is seen at Thursday’s low of $1,309.40 and then at $1,305.40. Wyckoff’s Market Rating: 6.0

December silver futures prices closed nearer the session high Thursday and saw profit taking after prices hit a 3.5-month high on Wednesday. The bulls have the overall near-term technical advantage. Prices are in a four-week-old uptrend on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the March high of $21.86 an ounce.


Silver Phoenix Twitter                 Silver Phoenix on Facebook