Daily Gold & Silver Market Report – 5/5/2016

Marcey Hollon

5/5/2016 10:38:00 AM

GOLD REBOUNDS FROM THREE DAYS OF LOSSES; WALL STREET OPENS HIGHER ON RISING ENERGY STOCKS

U.S. jobless claims hit a 12-month high and helped Gold rally from three days of losses. The Precious Metal broke $1,300 per ounce Monday as the dollar struggled against Japan’s yen before later recovering.  Analysts will watch Friday’s non-farm payrolls (NFP) report to decipher the Federal Reserve’s next interest rate increase. "Tomorrow's NFP remains the focal point," Macquarie analyst Matthew Turner said. "Strong employment growth in the U.S. is what is keeping alive the dollar's bull case and any signs it is flagging, without any benign explanation such as a tighter labor market, would be very bullish Gold."

Wildfires in Canada’s oil sands region as well as tensions in Libya have investors concerned over possible near-term shortages. This news helped oil prices rise 3 percent Thursday, boosting energy stocks. Investors await Friday’s jobs data to check the pulse of the labor market, which, if strong, could point to a sooner-rather-than-later interest rate increase from the Federal Reserve. "What we're seeing is a bit of a relief rally from oversold levels," Sarhan Capital Chief Executive Officer Adam Sarhan said. "The bulk of the earnings are behind us and now investors are looking ahead to the jobs report. There is an expectation that the economy and earnings are going to improve but that still needs to be proved."

 

At 11:37 A.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,277.90 Up $2.90
• Silver, $17.42 Up $0.09
• Platinum, $1061.90 Up $6.80
• Palladium, $599.00 Up $1.60

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