Morning Gold & Silver Market Report – 12/5/2014

Paul Stevens

12/5/2014 10:00:00 AM

U.S. PAYROLL DATA SUPRISES AS METALS RETREAT

Precious Metal prices are on the move and experiencing a pullback during morning trading.  The much anticipated release of the U.S. payroll report has provided pressure to metals as the report showed an increase in jobs by 321,000 in November, which was well beyond the expectation of 235,000 jobs being added.  However, with the physical market having very high demand, some analyst are looking to the Federal Reserve’s policy meeting in December for further direction.  ABN Amro analyst Georgette Boele said, “It will be interesting to see how (gold) develops as we move towards the FOMC meeting on Dec 17.”

A day after U.S. stocks fell from record highs, they are starting to fluctuate.  Yesterday’s announcement by the ECB that it will wait until 2015 to reconsider additional easing has disappointed some investors, however, today’s U.S. payroll data spurred demand as investors consider higher interest rates on the horizon.  During a phone interview, Bill Schultz, who oversees $1.2 billion as chief investment officer at McQueen, Ball & Associates said, “Is the Fed now more likely to raise rates sooner than later? That’s probably muting what would’ve been a much stronger reaction in the equity market to pretty good numbers.”

At 10:58 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,198.50 Down $12.20
• Silver, $16.38 Down $0.24
• Platinum, $1,226.70 Down $21.20
• Palladium, $804.70 Up $2.60

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