Daily Gold & Silver Market Report – 7/8/2016

Jennifer Carter

7/8/2016 11:34:00 AM

GOLD DOWN SLIGHTLY AFTER JOBS REPORT, DOLLAR GAIN

Spot Gold is down slightly Friday after the U.S. non-farm payroll report came out stronger than expected for June.  The U.S. dollar is at a two-week high against the euro, however Gold has managed to recover slightly in the wake of the Brexit vote. These conditions are contributing to renewed talk of an interest rate increase by the Federal Reserve this year.  "The knee-jerk reaction to the stronger than expected payrolls data has been lower, but you're already seeing Gold bounce off the lows," UBS analyst Joni Teves said. "That goes back to our view that dips are going to be bought. There are still a lot of people out there who want to build Gold positions, and will be keen to come in on any retracements."

Even though a U.S. interest rate increase is being talked about again, some analysts do not think it will happen until after July, if at all.  After the Brexit vote, the markets initially overreacted.  Friday’s jobs report shows there is likely to be a middle ground. “The Fed will almost certainly remain on hold at their next meeting on July 26-27,” High Frequency Economics Chief U.S. Economist Jim O’Sullivan said. Many economists believe the Fed will allow the dust to settle from the Brexit vote before taking any firm stance.

At 11:34 A.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,354.00 Down $8.30
• Silver, $19.939 Up $0.11
• Platinum, $1091.20  Down $1.90
• Palladium, $6126.20 Up $2.40

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