Morning Gold & Silver Market Report – 4/3/2013

Ryan Schwimmer

4/3/2013 8:12:00 AM

ADP JOBS REPORT DISAPPOINTS

Precious Metals prices are mostly flat this morning after the release of the ADP private-sector payrolls report disappointed investors. While economists predicted an addition of 215,000 jobs in March after a gain of 198,000 in February, the report showed that just 158,000 jobs were added last month. Optimism for the U.S. economy remains strong, however, as economists are warning not to read too much into this report, and instead wait for Friday’s government estimate on the jobs market.

Mitsui Precious Metals analyst David Jollie said, “Ascribing Gold weakness to equity strength is shorthand for talking about risk appetite, and there's no doubt that the ostensible solution to what's been happening in Cyprus took away some of the short-term reason to hold Gold. There is certainly a degree of optimism about the U.S. economy, and that should lead to some reductions in Gold long positions. There is scope for Gold to strengthen if economic data isn't as strong as people are hoping.” Indeed, investors’ eyes seem to be firmly locked on Friday’s government jobs report for further direction.

 

At 9:11 a.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1,573.90, Down $3.00.
• Silver, $27.33, Down $0.01.
• Platinum, $1,572.50, Down $0.20.
• Palladium, $765.60, Down $2.80.