Mid-Day Gold & Silver Market Report, 6/1/2012
GOLD, SILVER SOAR AFTER MORNING JOBS REPORT
Precious Metals prices were rising after a report indicated only 69,000 new jobs were added for May, pushing the unemployment rate to 8.2 percent. Todd Schoenberger at the BlackBay Group in New York said, “For those lucky enough to have a job, their spending power is sliding when accounting for inflation. The markets will respond negatively to this report.” The market was reacting negatively to this data, while Precious Metals were benefiting. The housing market will be affected by the weaker than expected jobs report, said Doug Duncan, chief economist at Fannie Mae. Duncan said, “The recent trend is reminiscent of the monthly patterns of the spring slowdown witnessed over the last two years that continued through the summer months. If this pattern recurs, we expect that hopes for a meaningful housing recovery will be delayed once again.”
The Gold price rose above $1,600 this morning, responding to the pessimistic jobs data. Richard Hastings at Global Hunter Securities said, “Gold reacts beautifully, and with the best price action, on U.S. troubles, and this morning’s wonderfully wobbly jobs data did the trick. Not only would there be more speculation about (a third round of quantitative easing) … but all of the data speak to tax revenue dilemmas due to growth limitations, and this means the U.S. budget comes back into focus. If this occurs, then Gold could rally this summer. If neither occurs, then Gold would remain under pressure due to the return of deflation.”
At 1:14 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,619.40, Up $55.70.
- Silver, $28.66, Up $0.81.
- Platinum, $1,436.10, Up $16.50.
- Palladium, $613.00, Down $0.90.
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