Morning Gold & Silver Market Report – 6/1/2011
“DISAPPOINTING” JOBS REPORT - WHEN DOES THIS STOP BEING A SURPRISE?
Another week, another disappointing jobs report. This time, it is the ADP private sector jobs report. Fully expected to be up by 175,000, the report showed just 38,000 new private sector jobs in May. The futures market opened low this morning, as investors and analysts awaited this report. Now that the report has been released, they are falling even further. When will economists stop being caught off-guard by low numbers? Some suggest they are in denial that the economic recovery is slowing down.
Gold has recovered from early-morning losses (likely thanks to the ADP report), but may be seeing some resistance thanks to receding fears of a Greece default. Natixis commodities analyst Nic Brown says that Greece is not the only one to worry about. “Whether it’s Greece or whether it’s the potential ramifications for Italy or Spain, that is a big bid to the gold market,” he explains. Another factor supporting gold prices is the strength of the U.S. dollar. The euro is sitting near a four-week high thanks to the news that the International Monetary Fund, The European Central Bank, and the European Union are working overtime to get a rescue deal done for Greece.
One subject being looked over in favor of the eurozone debt crisis is the turmoil in the Middle East. In Yemen, 115 people have been killed in the past week as President Ali Abdullah Saleh’s security forces battle insurgents. Many countries have been pressing President Saleh to step down in order to stem the spread of the chaos that is crippling the unstable country. NATO announced that it was extending the Libyan mission another 90 days, since Gaddafi again refused to step down. Reports show that over 1,000 civilians have been killed in Syria since mid-March, when demonstrations against the reign of President Bashar al-Assad began.
At 8AM (CT) the APMEX precious metals spot prices were:
- Gold - $1,539.30 (up $2.00 on the day)
- Silver - $38.28 (down $0.12)
- Platinum - $1,833.90 (down $1.10)
- Palladium - $783.40 (up $0.40)