Gold Gets Modest Lift From Downbeat U.S. Jobs Report

(Kitco News) - Gold prices are slightly higher in early U.S. trading Friday, and erased moderateovernight losses in the wake of a U.S. jobs report that was weaker thanexpected.February Comex gold was last up $1.20 an ounce at $1,322.80. March Comex silver was last up $0.021 at $17.295 an ounce.

Fridaymorning's December U.S. employment report from the Labor Department showed anon-farm payrolls rise of 148,000, which was below market expectations. Thenon-farm payrolls number was forecast to come in at up 180,000. Thestronger-than-expected jobs-growth reading in Thursday's ADP nationalemployment report (up 250,000) made many suspect today's jobs report would comein with a higher non-farm jobs number than earlier forecast.

Thekey outside markets on Friday morning see the U.S. dollar index losing most ofits overnight gains after the downbeat jobs report. The greenback remains in adowntrend. Meantime,Nymex crude oil prices are lower on a corrective, profit-taking pullback fromrecent solid gains.

Worldstock markets were mostly firmer overnight, boosted by the rally in the U.S.stock market Thursday that saw the iconic Dow Jones Industrial Average hit25,000 for the first time ever. U.S. stock indexes are pointed toward higheropenings when the New York day session begins.

Inother overnight news, the Euro zone consumer inflation rate was reported at up1.4% in December, year-on-year. That was down 0.1% from the November reading.Meantime, November producer prices were reported up 2.4%, year-on-year. TheEuropean Central Bank wants the Euro zone inflation rate to be closer to 2.0%.

OtherU.S. economic data due for release Friday includes the international trade ingoods and services report, manufacturers' shipments and inventories, and thenon-ISM manufacturing report on business.

Technically,Februarygold futures bulls have the overall near-term technical advantage. Pricesare in a three-week-old uptrend on the daily bar chart. Bulls' next upsidetechnical objective is pushing and closing prices above chart resistance at $1,350.00.Bears' next near-term downside price breakout objective is closing prices belowsolid technical support at $1,300.00. First support is seen at today's low of $1,317.10and then at $1,312.70. First resistance is seen at this week's high of $1,327.30and then at $1,335.00. Wyckoff's Market Rating: 6.0

Marchsilver bulls have the overall near-term technical advantage. Prices are in athree-week-old uptrend on the daily bar chart. The next upside price breakoutobjective is closing futures prices above solid technical resistance at theOctober high of $17.59 an ounce. The next downside price breakout objective forthe bears is closing prices below solid support at the October low of $16.435. Firstresistance is seen at this week's high of $17.32 and then at $17.50. Nextsupport is seen at today's low of $17.175 and then at $17.00. Wyckoff's MarketRating: 6.0.

By Jim Wyckoff

For Kitco News

Follow @jimwyckoffjwyckoff@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Canada second most significant player in global mining M&A

Plenty of potential for continued rotation out of tech

Platinum to palladium ratio low, platinum to gold high, versus history

Gold stocks up on metal and equities gains

Most major metals rebound on potential global monetary easing