Gold prices are holding steady near unchanged levels on Thursday, with April gold last trading at $2,925.20 after a mild profit-taking session earlier in the week. Silver prices also remained stable, with May silver closing at $33.27.
The focus shifts to Friday’s employment report from the Labor Department, where non-farm payrolls are expected to rise by 170,000, up from the January report’s 143,000. This data point is crucial in determining the market’s sentiment on the US economy and its potential impact on global markets.
Risk aversion remains elevated, driven by concerns over tariffs and their potential to spark a recession. The specter of a tit-for-tat game between major countries has led to speculation about the possibility of a US recession this year. GDP growth forecasts have been downgraded sharply, while inflation remains above the Fed’s 2% target.
In other news, the European Central Bank cut its main interest rate by 0.25%, as expected. The US dollar index fell to a four-month low, while Nymex crude oil futures prices declined slightly.
Technically, gold and silver prices face key resistance and support levels. April gold futures bulls aim for a close above $2,974.00, while bears target a price below $2,844.10. May silver futures bulls are seeking a close above $34.56, while the bears hope to push prices below $31.00.
The current market sentiment is reflected in Wyckoff’s Market Rating, which stands at 8.0 for gold and 5.5 for silver.
Source: https://www.kitco.com/news/article/2025-03-06/gold-silver-markets-pause-ahead-us-job-report