Mid-Day Gold & Silver Market Report – 9/5/2014

Ted Prince

9/5/2014 12:09:00 PM

GOLD STEADY DESPITE WEAK JOBS DATA

Gold is trading near even levels today even as last month’s government payroll reports showed the fewest number of jobs added for all of 2014.  “Previous data had suggested the economy was gaining traction, but today’s number is a bit of a disappointment, and the Fed may have to maintain lower interest rates,” Chris Gaffney, the senior market strategist at EverBank Wealth Management, said. “This is a good number for gold.”  Gold remains up 5.3 percent year-to-date as skirmishes in the Middle East and tension in Ukraine has bolstered the safe-haven demand for Precious Metals.  Employment remains a key factor in determining the future of U.S. monetary policy.  Poor jobs numbers could prolong quantitative easing measures and keep domestic lending rates low for longer-than-expected. 

U.S. stocks are slightly higher today but several sessions of losses could cause the S&P 500 to realize its first weekly decline in one month.  Sluggish job creation data is causing some trepidation among equities investors today as investors weigh the strength of U.S. economic expansion.  “There has been an accumulation of positive surprises coming out of macro data so the jobs report runs counter to that,” Gary Pzegeo, who helps oversee $25.4 billion at Atlantic Trust in Boston, said. “The underlying direction of monetary policy in different parts of the world is shifting. That could be a source of volatility and uncertainty.”  Many analysts and retail investors alike are expecting heightened volatility across multiple markets as the U.S. summer months come to an end and trading volumes looks to increase. 

At 1:09 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,267.80, Up $0.30.
• Silver, $19.17, Up $0.02.
• Platinum, $1,411.70, Up $2.40.
• Palladium, $890.70, Down $0.30.

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