Comex gold futures prices are posting moderate gains and hit a fresh six-month high in early U.S. trading Thursday. The monthly meeting of the European Central Bank did produce the widely expected, fresh EU monetary stimulus plan. Details of the plan were being announced by ECB President Mario Draghi as of this writing. Gold and silver prices did back down from their daily highs on some stronger-than-expected U.S. economic data out Thursday morning. December gold last traded up $9.90 at $1,703.90 an ounce. Spot gold was last quoted up $8.40 an ounce at $1,702.25.  December Comex silver last traded up $0.29 at $32.62 an ounce.

Gold and silver prices were posting solid gains in early morning trading, on expectations the ECB would indeed unveil a fresh monetary stimulus package. However, both metals pared their gains on news the U.S. ADP national employment report showed a stronger-than-expected rise of 201,000 in August. Weekly U.S. jobless claims also declined in the latest reporting week.

European stock markets were higher on the expected ECB bond buying program. Spanish and Italian bond yields also declined Thursday.

On Friday the important U.S. employment report for August is released. Many believe a weak jobs report on Friday would open the door wide for a fresh U.S. monetary stimulus announcement by the Federal Reserve at its FOMC meeting in two weeks. The forecast for the key non-farm payrolls figure of the jobs report is up 125,000. However, the strong ADP jobs figure Thursday has many wondering of the Friday jobs report will be stronger than forecast.

In other overnight news there was more weak economic data released from Europe Thursday. The collective Euro zone gross domestic product fell by 0.2% in the second quarter, for an annualized decline of 0.7%. Also, EU consumers reduced their purchases by 0.2% in the second quarter. EU businesses cut their spending by 0.8% in the same time period. Meantime, the Bank of England left its monetary policy unchanged, the BOE said in a statement.

The U.S. dollar index was near steady in early trading Thursday, somewhat supported by the stronger U.S. economic data released Thursday morning. The greenback bears still have the near-term technical advantage as a six-week-old downtrend line is in place on the daily bar chart. Meantime, crude oil prices are firmer Thursday, on the ECB stimulus package. Oil bulls still have the near-term technical advantage. The precious metals markets will continue to look closely at how these two key “outside markets” trade on a daily basis.

U.S. economic data due for release Thursday includes the ADP national employment report, the Challenger job-cut report, the weekly jobless claims report, the ISM non-manufacturing report, the weekly DOE energy stocks report, and the global services PMI.

The London A.M. gold fixing is $1,708.50 versus the previous A.M. fixing of $1,689.50.

Technically, December gold futures bulls are in strong technical command as prices have pushed well above $1,700.00 and hit a fresh six-month high overnight. Prices are also in a two-month-old uptrend on the daily bar chart. The gold bulls’ next upside price breakout objective is to produce a close above solid technical resistance at $1,750.00. Bears' next near-term downside price objective is closing prices below solid technical support at last week’s low of $1,647.10. First resistance is seen at $1,720.00 and then at $1,725.00. First support is seen at $1,700.00 and then at the overnight low of $1,693.70. 

December silver futures prices hit a fresh five-month high overnight and are in a steep six-week-old uptrend on the daily bar chart. Bulls have strong upside near-term technical momentum and their next upside price breakout objective is closing prices above solid technical resistance at $34.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at $31.315. First resistance is seen at the overnight high of $33.04 and then at $33.50. Next support is seen at $32.47 and then at the overnight low of $32.245.

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