(Kitco News) - Gold prices are solidly higher and hit a five-week high in early U.S. trading Monday, following last Friday’s much-weaker-than-expected U.S. employment report. The improving chart postures for gold and silver are also prompting technically based buying interest in both markets. June Comex gold was last up $15.30 at $1,216.40 an ounce. May Comex silver was last up $0.374 at $17.075 an ounce.

Last Friday’s U.S. jobs report for March showed a much-lower-than-expected rise of 126,000 in the key non-farm payrolls number, which had been expected to come in at up 248,000. Most U.S. markets were closed Friday for the Good Friday holiday. Thus, much of the market reactions to Friday’s jobs report will be seen on Monday. U.S. stock indexes are sharply lower in pre-opening trading Monday morning. Most European markets were closed Monday for the Easter holiday.

There are a growing number of traders and market watchers who believe the U.S. Federal Reserve will not be able to raise interest rates in 2015, due to the lackluster growth of the U.S. economy. Friday’s jobs numbers bolsters those notions. A less hawkish Fed U.S. monetary policy has in recent years been a major bullish factor for the gold and silver markets.

The U.S. dollar index is near steady to start the trading week after dropping sharply Friday in the wake of the employment report. The greenback bulls have faded the past three weeks and there are early technical clues the dollar index has put in a major top. The recent weakness in the U.S. dollar index has also been a bullish underlying element for the precious metals markets.

The other key “outside market” finds crude oil prices higher Monday morning. Reports said Saudi Arabia has raised its official price for its oil on the world market. Crude oil prices have worked up from the multi-year low scored in mid-March, to begin to suggest a market bottom is in place. This is another positive for precious metals and the entire raw commodity sector.

In other news, Greece has a big debt payment due to the International Monetary Fund later this week as Greek-EU official debt refinancing talks continue—with reportedly only limited success. Reports Monday said Greece will be able to make this week’s debt payment to the IMF.

U.S. economic data due for release Monday includes the U.S. services purchasing managers index (PMI), the employment trends index, and the ISM non-manufacturing report on business.

(Note: Follow me on Twitter–@jimwyckoff–for breaking market news.)

Wyckoff’s Daily Risk Rating: 5.0 (Trader and investor market risk aversion is not high at present.)

(Wyckoff’s Daily Risk Rating is your way to quickly gauge investor risk appetite in the world market place each day. Each day I assess the “risk-on” or “risk-off” trader mentality in the market place with a numerical reading of 1 to 10, with 1 being least risk-averse (most risk-on) and 10 being the most risk-averse (risk-off), and 5 being neutral.

Technically, June gold futures market bears still have the overall near-term technical advantage. However, bulls have gained upside momentum by producing a three-week-old uptrend on the daily bar chart. The gold bulls’ next upside near-term price objective is to produce a close above solid technical resistance at $1,240.00. Bears’ next near-term downside price breakout objective is closing prices below solid technical support at last week’s low of $1,178.20. First resistance is seen at the March high of $1,223.70 and then at $1,220.00. First support is seen at the overnight low of $1,212.60 and then at $1,200.00. Wyckoff’s Market Rating: 4.0

May silver futures bears have the overall near-term technical advantage. However, bulls are working on a three-week-old uptrend on the daily chart. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at the March high of $17.405 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at the overnight high of $17.235 and then at $17.405. Next support is at the overnight low of $16.96 and then at $16.701. Wyckoff’s Market Rating: 4.0.

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