Closing Gold & Silver Market Report – 11/7/2014

Brandi Brundidge

11/7/2014 4:18:00 PM

WEAK U.S. JOBS DATA RAISES GOLD, STOCKS

After a harsh week, Precious Metals prices were lifted following lower than expected U.S. jobs figures for October. The news pressured the U.S. dollar, as investors continued to take profit on the greenback after its month-long rally. “After we've had such a big selloff, some speculators are covering their shorts after the worse-than-expected nonfarm number. I think that's all it is at this point,” Newedge Precious Metals trader Thomas Capalbo said. Although the U.S. nonfarm payroll did not perform as expected, the unemployment rate fell to a six-year low, giving more reason for the U.S. Federal Reserve to raise interest rates in the near future.

The U.S. stock market closed the week with both the S&P 500 and Dow Jones Industrial Average at record highs. This success was based on the latest unemployment news, as investors expected better figures Friday. “The [jobs] report is positive. The economy is still adding more than 200,000 jobs a month, but at the same time there is no indication that it is overheating as the wage growth remains muted. There is no reason for the Fed to get hawkish,” Schwab director of market and sector research Brad Sorenson said. The current job market conditions reflect neither a strong nor weak economic recovery, which could be good overall for commodity prices.

At 5:15 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,180.70 Up $36.10
• Silver, $15.88 Up $0.40
• Platinum, $1,219.50 Up $20.40
• Palladium, $774.50 Up $20.90

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