gold price

Following a U.S. economic report, gold prices are trading modestly higher than expected Friday morning.

This suggests recent selling pressure has at least temporarily exhausted the bears, and the yellow metal is due for at least a pause from the decrease. June gold futures were last at $1,274.30, an increase of $2.20. July Comex silver was last up $0.068 at $14.685 an ounce.

This morning’s just-released April U.S. employment report from the Labor Department showed a rise of 263,000. The number was forecast at up 190,000. However, Wednesday’s firm ADP jobs gain had much thought of today’s more critical Labor Department jobs number would be higher.

European stocks were mostly firmer while Asian stock markets were mixed to flat overnight. U.S. stock indexes are pointed toward firmer openings when the New York day session begins. U.S. stock indexes have sold off the first two days in May. The old saying of “sell in May and go away” suggests selling stocks in May and not coming back to the buy side until late summer.

The World Gold Council is forecasting that world central banks will buy 500 to 600 tons of gold this year, compared to around 400 tons in recent years. However, in 2018 global central banks bought 652 tons.

The key “outside markets” today see the U.S. dollar index modestly higher. Additionally, Nymex crude oil prices are near steady and trading just below $62.00 a barrel.

Other data due for release Friday includes the advance economic indicators report, the U.S. services PMI, and the ISM non-manufacturing report on business.