Closing Gold & Silver Market Report, 8/3/2012
GOLD PRICE RISES ON IMPROVED JOBS DATA
Precious Metals stayed in positive territory Friday based on the better than expected jobs report that was released earlier in the day. The news however was tempered by the fact that unemployment still remains relatively unchanged. Expectations continue to grow that further quantitative easing will likely occur in September. Trader Nicolas Berge said, “Even though the nonfarm payrolls beat the estimates, the unemployment rate also rose, so the odds for a QE are all the same. The increasing expectation of central bank actions is likely to help Gold break above its recent trading range.”
The number of new jobs was 163,000 last month, which beat the less than stellar showings over the previous three months. The news is a slight silver lining over eurozone concerns, America’s looming “fiscal cliff” and pending elections. The stock markets remained relatively unfazed by the news. Though the number of jobs rose, the unemployment rate rose, as well. Economist Robert DiClemente said, “It’s a relief we did not post another number like 75,000, but the reality is it’s not night and day. It’s not as though it brings us all the way back to being wildly optimistic.” Economists also are in agreement that the Fed’s action is likely to occur in September. Michael Feroli said, “We think the odds are still tilted in favor of more Fed accommodation at the September meeting, and that call obviously remains contingent on economic and financial developments over the next six weeks.”
At 5:12 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,604.00, Up $15.30.
- Silver, $27.84, Up $0.73.
- Platinum, $1,405.70, Up $17.90.
- Palladium, $581.00, Up $12.20.
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