Daily Gold & Silver Market Report – 10/1/2015

Marcey Hollon

10/1/2015 11:17:00 AM

GOLD SLIDES AHEAD OF PAYROLLS DATA; CONFLICTING LABOR MARKET, U.S. FACTORIES REPORTS

Positive U.S. jobs data propelled further speculation the Federal Reserve will raise interest rates this year, as the strength of the jobs market has been a key factor as to when to increase rates. Investors expect a strong U.S. non-farm payroll report Friday, considering payroll processor ADP reported 200,000 jobs added in September. "This week there has been pressure ahead of the payrolls report. The market is realizing that, if it is a strong one, they really have to start pricing in a rate hike this year," ABN Amro analyst Georgette Boele said. "The comments have been quite hawkish from the Fed as well. Overall this is mainly a Fed story, combined with some dollar (strength)."  Gold has been pressured as expectations of an interest rate increase would raise the price of holding the non-yielding bullion. "Gold (completed) its fourth consecutive down day. Lower lows and lower highs over those days make for a short-term bearish trend," ScotiaMocatta technical analysts said. "We will run into technical support at $1,100 [per ounce] from September 11. Moving-average resistance now comes in near $1,130 [per ounce]."

September showed slowing U.S. factory growth while the labor market tightened, giving mixed signals on the overall health of the economy. Reports show U.S. factory growth slowed over the last 12 months and a slowdown in China’s growth was a factor in the Fed not raising interest rates last month. Applications for U.S. jobless benefits remain near a 15-year low, pointing to a strengthening labor market. "Filings at this level are incredibly low by historical standards, speaking to how tight labor markets are getting," Amherst Pierpont Securities economist Stephen Stanley said. Overall, data shows a split in the economy, concerning policymakers on whether the economy is strong enough for the rate hikes.

At 12:15 A.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,117.50 Down $0.70
• Silver, $14.64 Up $0.01
• Platinum, $905.70 Down $4.40
• Palladium, $680.40 Up $27.40

APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (EDT)! Or call us Fridays until 6 p.m. (EDT)! If you have any questions about investing in Precious Metals or simply would prefer to place your order by telephone, we are here to help.