Gold Value Pauses Ahead of Non-farm Payrolls Data

Cassie Bastien

6/2/2017 10:51:55 AM

Daily Gold & Silver Market Report – 06/02/2017

President Donald Trump’s announcement Thursday that the U.S. would pull out of the landmark 2015 Paris Agreement, a 195-country accord to mitigate global warming, caused Gold prices to retreat. Markets now look for the release of U.S. non-farms payroll data. Gold Seek News reported, “General consensus is that 210,000 new positions were added in May. However, this could be an underestimation given the stronger ADP number [Thursday].” The Paris deal, jobs numbers, European elections and suspected terrorist attacks all come together to play a part when considering the value of Gold prices or as an investment. It is a combination that forms “a far more complex story [than individually], which is the global financial and geopolitical system.” The moral of the story is no matter how many graphs, reports and numbers are looked at, investors and viewers alike weigh on volatility to keep the Precious Metals market in movement.

• On average, Gold is up 5.88 percent year-to-date, since start of 2017 (News.GoldSeek.com).

U.S. Job Report Causes Silver Prices to Spike

The May U.S. non-farm payrolls report slightly helped the value of Silver prices gain 0.43 percent, according to Economic Calendar Technical Market Analyst Tracy Morganthall. “Non-farm payrolls came in showing an increase of 138,000 for May, versus an expected reading at 185,000. ... The unemployment rate fell to its lowest level in 16 years to 4.3 percent from a prior reading at 4.4 percent.” But while this slight increase boosted Gold and Silver prices, the U.S. dollar index fell quite sharply. Still, Morganthall said, “The disappointing number [from the ADP report] has now called into question additional interest rate increases in the U.S. beyond this month.” Even so, Fed fund futures are pricing in a 93.5 percent chance of an interest rate increase at the Federal Open Market Committee meeting June 13-14.

U.S. Climate Accord Exit Worsens Fears for Oil Prices

With the U.S. withdrawing from the Paris Climate Accord, market concerns surrounding increased oil supplies caused renewed selling. Tim Clayton with Economic Calendar said, “Oil prices moved higher following the [Energy Information Administration] inventories data on Thursday, but there was selling pressure above $49.00 [per barrel] and prices retreated again late in the U.S. session.” It was President Trump’s overnight decision to withdraw from the 2015 Paris Climate Accord that pressured prices during European trading. Clayton said, “There were fears that U.S. production output would increase further and also concerns that the U.S. action could lead to a weaker commitment to cutting fossil-fuel production in other countries.” Furthermore, Clayton continued, “There was also evidence that losses below the $47.80 p/b area triggered a fresh round of long liquidation together with stop-loss selling with a dip in Brent below the key $50.00 p/b level also triggering a fresh round of selling.”

At 11:51 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,279.50 Up $9.20
• Silver, $17.61 Up $0.23
• Platinum, $955.70 Up $24.20
• Palladium, $842.10 Up $13.00

APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (ET)! Or call us Fridays until 6 p.m. (ET)! 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.