Morning Gold & Silver Market Report – 7/8/2011
DISMAL JOBS REPORT STUNS INVESTORS, BOOSTS GOLD
Before the release of the nonfarm payrolls report this morning, economists’ consensus was for a gain of 125,000 jobs in June, with unemployment staying at 9.1%. Gold prices were down slightly in anticipation of the report, and the dollar strengthened amid the optimism. Yet again, the report dashed everyone’s optimism, as it showed that just 18,000 jobs were added in June after a shellacking in May (25,000 after an expectation of 54,000). The unemployment rate jumped to 9.2%. This report directly reflects the final push of QE2, which ended June 30, and shows that the stimulus did not affect the jobs market as intended. Gold rebounded sharply upon the release, as stock futures and the dollar weakened.
Yesterday, President Obama and House Speaker John Boehner had what the former called a “very constructive meeting” regarding the debt ceiling. One source said Obama and Boehner had appeared to have discussed most things on the table in the ongoing talks beforehand. In a live-chat yesterday on Reuters, PIMCO chief Mohamed El-Erian seemed to have faith that President Obama will make sure that a deal is made so the U.S. can avoid its first-ever default.
The situation in Libya seems to be progressing. After many setbacks, rebels have pushed toward Tripoli on two fronts against Gaddafi forces. It seems that they are now “waiting for NATO backup or for Gaddafi forces to run out of ammunitions to make a move to take the city center,” according to a source. In Yemen, President Saleh has said he is prepared to share power in a recent TV appearance, his first since an attack on his compound. Protesters say this is the same speech as always, and is unlikely to be met with acceptance.
At 8:00 am (CT) the APMEX precious metals spot prices were:
- Gold - $1,543.00 – Up $11.20 on the day.
- Silver – $36.60 – Flat.
- Platinum – $1,743.60 – Up $0.60.
- Palladium – $779.00 – Down $9.60.