Morning Gold & Silver Market Report – 12/4/2014

Brandi Brundidge

12/4/2014 2:15:42 PM

GOLD MOVES AHEAD OF ECB MEETING; U.S. UNEMPLOYMENT CLAIMS FALL

Gold slightly moved back during early morning trading ahead of the European Central Bank (ECB) meeting due to an expected announcement for further fiscal policy as the euro has been performing poorly compared to the U.S. dollar.  The U.S. dollar has soared to a two-year high, while the euro dropped to less than $1.23 for the first time in over two years today.  "Generally European easing has played out on gold via a stronger dollar (and) weaker gold prices," Citi analyst David Wilson said. "(Though) it seems to me that there is a decent physical floor which is going to prevent gold from dipping too low."  The ECB decision to push further monetary policy and Friday’s U.S. payroll figures will provide investors a better perspective on the U.S. economy’s growth.  "We expect gold to be supported should the U.S. payroll number disappoint and weaken if it exceeds expectations," HSBC said in a note.

According to the Labor Department, for the week ending November 29, state unemployment benefits claims dropped by 17,000 to a seasonally adjusted 297,000.  Currently, the unemployment rate is following the trends predicted by analysts reaching a six-year low of 5.8 percent. Tomorrow’s report for November’s U.S. payroll number will provide accurate figures on how the job market is actually performing.

At 3:15 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,211.00 Down $0.70
• Silver, $16.58 Up $0.13
• Platinum, $1,242.50 Up $13.00
• Palladium, $801.40 Up $3.80

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