Mid-Day Gold & Silver Market Report – 1/8/2014
PRIVATE JOBS NUMBERS WEIGH ON GOLD; INVESTORS AWAIT FED MINUTES
The Gold price slid down this morning as data was released showing December as the greatest month of jobs creation in over a year. With employment figures depicting continued improvement, investors will now await the release of the Federal Open Market Committee minutes from December to gain further insight into the future of the domestic stimulus package. Gold has proved resistant to any significant downward pressure in recent sessions as the dollar continues to strengthen and the Fed looks to further tighten its quantitative easing (QE) measures. The overall strength of the jobs market in the U.S. will be a direct contributor to the Fed’s decisions regarding QE.
U.S. stocks have wavered on Wednesday as a private report depicted better-than-expected employment numbers from the month of December. “It’s a good number,” Ryan Larson, head of U.S. equity trading at RBC Global Asset Management (U.S.) Inc., said. “It continues to confirm an improving employment picture. We’ll see if the market takes it for that, or whether it causes worry that the Fed will ultimately increase its rate of tapering.” The addition of 238,000 new private sector jobs last month and a shrinking level of monetary stimulus could allow movement of equities markets to revert to traditional fundamentals as opposed to reliance on liquidity injections from the Federal Reserve.
At 1 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,223.50, Down $8.60.
- Silver, $19.45, Down $0.39.
- Platinum, $1,414.00, Down $3.40.
- Palladium, $737.50, Down $4.20.