Daily Gold & Silver Market Report – 5/12/2016

Marcey Hollon

5/12/2016 11:31:00 AM

GOLD SLIPS AS DOLLAR STRENGTHENS; U.S. JOBLESS CLAIMS HIT-ONE YEAR HIGH

A strengthening U.S. dollar has led to profit taking, pulling Gold back from its highest point since April. The Precious Metal had been at $1,303.00 per ounce before giving up some gains. Weak domestic and international economic data has helped Gold gain nearly 20 percent this year. The first quarter saw demand for Gold reach its highest level on record with the World Gold Council. "It was pleasing to see the strong uptick in physical demand for Gold in the first quarter of 2016... especially in Western financial centers that have effectively been absent for three years," Old Mutual Gold & Silver Fund manager Ned Naylor-Leyland said. "In view of the diminishing physical float underpinning the very large London 'over the counter' paper Gold market, we see the trend for physical Gold ownership in the West as signaling an important structural change."

For the week ended May 7, unemployment benefit claims were at 294,000, the highest level since February 2015. This surprising rise in the number of filings has prompted worries over the true health of the labor market. Striking Verizon workers contributed to the surge in jobless claims.  Cheap oil and a stronger dollar have been able to keep inflation under the Federal Reserve’s 2 percent target mark, but with import prices rising for the second straight month, that target may be fading. "Jobless claims have moved sharply higher in recent weeks, reinforcing concerns that labor market conditions have softened in response to the slowdown in the economy in recent months," said Jim Baird, chief investment officer at Plante Moran Financial Advisors in Kalamazoo, Michigan.

 

At 12:27 P.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,271.70 Down $4.70
• Silver, $17.15 Down $0.20
• Platinum, $1051.80 Down $13.80
• Palladium, $598.30 Down $10.80

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