(Kitco News) – Gold and silver prices are sharply higher in early US trading on Friday, boosted by a US jobs report that landed in the sweet spot of market expectations for the report. Silver prices hit a three-week high. Strong gains in crude oil prices and a weaker US dollar are also bullish external market forces for metals today. Short coverings by futures traders are present in both precious metals markets for the end of the trading week. December gold was up $28.40 at $1,659.60 and December silver was up $0.785 at $20.22.

The just-released monthly U.S. employment report for October from the Labor Department showed core nonfarm payrolls totaled 261,000, which was above an expected rise of 205,000 and compared to a gain of 263,000 seen in the September report. . Gold prices added to their steady gains overnight after the report was released, as analysts say this is a Goldilocks report that is “not too hot and not too cold” – meaning not too strong to prompt the Federal Reserve to become more aggressive in tightening monetary policy, nor is it too weak to cause more concern about a US economic recession.

Global stock markets were mostly up overnight. U.S. stock indexes are headed for higher opens as the New York session begins, on corrective bounces from selling pressure seen over the past three sessions and U.S. jobs numbers landing in the sweet spot of market expectations.

In overnight news, the eurozone producer price index in September rose 41.9% year-on-year, which was close to expectations. Rising energy costs in Europe are driving the CPI sharply higher.

Silver bulls recently outperformed gold bulls. One reason may be the growing demand for India. Broker SP Angel said in an email today: “Silver India’s insatiable appetite for silver is eating into global warehouse stocks. Analysts expect India’s silver consumption to have grown over 80% this year. Indian silver market hit tough during the two years of Covid, but in 2022 Markets have seen a significant jump in demand. Traders are citing warehouse inventory levels in London and Hong Kong as subdued demand feeds the market.”

Key foreign markets today saw the US dollar index retreat in a corrective pullback from Thursday’s strong gains. Nymex crude oil prices are sharply higher, trading around $91.50 a barrel. The 10-year US Treasury bond yields about 4.2%.

Other U.S. economic data due on Friday includes the global service purchasing managers’ index.

Technically, gold futures have the consistent overall short-term technical edge. Bulls’ next upside price objective is to create a close above the firm resistance at $1,700.00. The Bears’ next short-term downside objective is to push futures prices below solid technical support at $1,600.00. First resistance is seen at this week’s high of $1,673.10 and then at $1,679.40. First support appears at $1,650.00 and then at the overnight low of $1,631.10. Wyckoff Market Rating: 2.0

Silver bulls have regained the overall short-term technical advantage. There is a volatile uptrend on the daily bar chart. Silver bulls’ next upside price target is a price close above solid technical resistance at the October high of $21.31. The next bearish price objective for the bears is a price close below the solid support at $18.00. The first resistance appears at $20.50 and then at $21.00. The next support is seen at $20.00 and then the overnight low of $19.425. Wyckoff Market Rating: 6.0.

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