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Metals trade flat following jobs data release

 
 Metals trade flat following jobs data release (photo credit: PR)
Metals trade flat following jobs data release
(photo credit: PR)

Precious metals draw down slightly after jobs data comes on consensus. Volatility likely to be lower as U.S. heads into holiday weekend.

Metals traded relatively flat Thursday morning as the United States released its weekly initial jobless claims totaling 231,000 on an estimate of 232,000.

Gold was trading at $2,510 an ounce, giving up about $5 shortly after the data was released, causing a few minutes of volatility in the market. Silver dropped about 5 cents after the data was released to trade around $29.35.

What’s coming up next?

Speculators will now look to the second revision of 2Q GDP data with an estimate of 2.8% slated for release before market opening.

Atlanta Federal Reserve President Raphael Bostic will speak at 3:30 p.m. today.

Aside from these events, there isn’t much suggesting a volatile market before heading into the weekend, which will be longer as the U.S. celebrates Labor Day on Monday and markets will be closed.

Gold price outlook

Kitco gold analyst Jim Wyckoff targets gold resistance at $2,600 to signal a breakout, while bears should look to the $2,475 level to signal movement.

 This minute chart shows an increase in volatility Thursday morning in the price of gold after jobs data was released. (credit: PR)
This minute chart shows an increase in volatility Thursday morning in the price of gold after jobs data was released. (credit: PR)

On the silver side

For Silver, Wyckoff said bulls should keep an eye on solid technical support at the $31 mark. On the downside, he said speculators should look at the $28 an ounce level after breaking through some resistance building at $30.

The analyst said he prefers gold as a trade under the current short-term conditions.

 This minute chart shows an increase in volatility Thursday morning in the price of silver after jobs data was released. (credit: PR)
This minute chart shows an increase in volatility Thursday morning in the price of silver after jobs data was released. (credit: PR)

This article is for informational purposes only. The opinions and analysis herein are those of the author and are not financial advice. The Jerusalem Post (JPost.com) does not endorse or recommend any investments based on this information. Investors should consider their financial situation, investment goals, and risk tolerance before making any decisions. Consulting a qualified financial advisor is recommended. JPost.com is not liable for any investment losses from using this information. The information provided is for educational purposes only and should not be considered as trading or investment advice.

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