Closing Gold & Silver Market Report – 9/2/2011
The Worst Jobs Report in Over a Year Send Gold & Silver Soaring
The equity and precious metals markets continued digesting today’s dismal August jobs report. The U.S. stock market closed down 253 points, while gold and silver prices shot upwards. Zero job growth was not the news economists expected and this only added fuel to the fear of another recession. Zero job growth creates additional pressure on President Obama, the Congress and the Federal Reserve to do something to add stimulus to the economy. As we move into the Labor Day Weekend, the jobs issue is firmly entrenched as our nation’s number one priority. President Obama is scheduled to lay out his job plans in a speech next Thursday.
After today’s jobs report, if you are an investor in U.S. government bonds, you now see additional Fed intervention as a sure thing. The general opinion is that the Fed will announce a plan to sell short-term treasury debt and purchase long term bonds. Known in the financial markets as “Operation Twist”, the goal would be to flatten the yield curve, lower long-term interest rates and thus stimulate the economy.
At 4PM (CT) the APMEX precious metal prices were:
- Gold price - $1,888.70 – up $57.60
- Silver price - $43.37 – up $1.77
- Platinum price - $1,886.50 – up $32.60
- Palladium price - $776.30 – down $14.20