Gold and Silver Markets Roar Back to Life Friday – Senior Technical Analyst

Kitco News -- The gold market has roared back to life Friday as several factors are combining to work in favor of the beleaguered yellow metal bulls. ‘Gold prices rallied in the immediate aftermath of a surprisingly weak U.S. employment report, in which only 142,000 new non-farm jobs were created in September--well below the 200,000 rise that was expected. That news fell into the camp of the U.S. monetary policy doves, and the precious metals bulls,’ said Jim Wyckoff a Senior Metals Analyst for Kitco Metals. ‘The U.S. stock market sold off in the wake of the jobs report, amid risk aversion, which in turn prompted some safe-haven demand for gold, especially heading into the weekend,’ he said on Friday. Wyckoff explained that all are prompting heavy short covering in the gold futures market and bargain hunting in the cash market. ‘The very near-term chart posture for gold has also turned less bearish, including some buy stop orders being triggered in the futures market when prices pushed above what were technical resistance levels,’ he said. December gold was last up $26.50 an ounce at $1,140.00.