Morning Gold & Silver Market Report – 3/9/2012

Peter LaTona

3/9/2012 8:19:00 AM

GOLD, SILVER PRICES FALLING AFTER JOBS REPORT     

This morning’s jobs report came in slightly better than expectations, driving down precious metals prices. Economist had projected a net of 210,000 new jobs, and the number reported was 227,000. This was not enough to move the jobless rate off 8.3 percent, but the report still points to a slow recovery. The warming trend we experienced in February is getting some of the credit, as more construction work could be done. Concerns remain because, although the number beat expectations, it fell short of the 284,000 new jobs reported in January.

The U.S. trade gap widened to a three-year high, as imports reached an all-time high. Economic growth generally will decline as a result of fewer exports. In short, the U.S. is buying more from other countries but selling less. The decline in exports can somewhat be tied to the European debt crisis. The European nations are prime customers for U.S. businesses, and those nations have been cutting back their spending.

The Greek bond swap is a done deal. More than 83 percent of the bondholders agreed to the debt swap, and now Greece is in a position to force the remaining bondholders to accept the deal. This is the largest debt restructure in history, and although there is great uncertainty surrounding the Greek crisis, there will not be a default for the time being.

At 8 a.m. (CST), the APMEX precious metals prices were:

• Gold - $1,680.10 – Down $19.60.
• Silver - $33.24 – Down $0.60.
• Platinum -  $1,655.30 – Down $2.40.
• Palladium - $692.00 – Down $7.40.