Mid-Day Gold & Silver Market Report – 10/3/2014

Brandi Brundidge

10/3/2014 1:20:30 PM

GOLD REACTS TO JOBS REPORT; REAL UNEMPLOYMENT RATE UNCERTAIN

Precious Metals prices quickly began moving down after the U.S. Labor Department showed an estimated 248,000 jobs were created in September. They also announced the unemployment rate fell to 5.9 percent, its lowest point since July 2008. Gold broke new ground on the news, falling under $1,200 an ounce for the first time in 2014, while Platinum dropped about 3 percent. "We have a global economy that is not going anywhere, but we do have a strong nonfarm payrolls report, and that appears to be enough to take down Gold and discourage people from holding Gold," Merk Funds Chief Investment Officer Axel Merk said.  This past week, the U.S. dollar has increased more than 1 percent against other currencies and is on track to see its 12^th straight week of gains, something the dollar has not done in four decades.

The market is constantly influenced by economic reports and today’s jobs report has pressured Precious Metals prices. To get a better perspective, a number of economists have dissected the unemployment rate into a different figure, which is known by the Bureau of Labor Statistics as “U-6.”  This true total calculates not only the unemployed, but the underemployed and the discouraged that have completely steered away from looking for employment.  The U-6 rate was calculated at 11.8 percent for September, which was the first time it had fallen below 12 percent since October 2008. 

At 2:20 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,194.20, Down $22.40.
• Silver, $16.90, Down $0.22.
• Platinum, $1,230.70, Down $41.70.
• Palladium, $757.70, Down $10.90.

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