Gold and silver spot values have bounced back as of the writing of this post on Friday, but the week has been lost for a few days now. The main feature in the marketplace this week was a number of economic reports and data that had investors of all types paying attention. For the most part, however, these economic happenings weighed on spot values and caused them to depreciate further.
Today, the market’s focus was directed towards the release of the US employment report for October. After September’s data handily beat the expectations of the market, it really isn’t surprising that today’s data is expected to do the same. After all, the US employment sector has been consistently improving over the course of the past few months.
Employment Data Mostly Disappoints, Lifts Metals Slightly
Though there was a lot for investors to pay attention to this week, few pieces of data were more important to investors than today’s employment report from the United States. After September’s report, released this time last month, showed that nearly 250,000 new jobs were added to the economy, it makes sense that preliminary expectations were for job growth somewhere in the neighborhood of 230,000. Unfortunately, the figures that were released earlier this morning showed that only about 214,000 new jobs were created last month.
While this is still indicative of strong job growth, the fact that it fell short of median expectations ended up doing a bit of damage to the US Dollar. For gold and silver, today’s downbeat employment report offered a bit of respite and allowed spot values the chance to gain back a fraction of this week’s losses. Still, it must be said that the current market atmosphere is one that is almost wholly bearish for gold and silver.
ECB Leaves Policy Unchanged
Another important economic talking point this week was yesterday’s meeting of the European Central Bank. As is always the case, the market was paying close attention to the meeting in order to see if the ECB was going to announce any changes to monetary policy. After the Bank of Japan, a little over a week ago, announced further injections of cash to the Japanese economy, most though that Mario Draghi and his colleagues would do the same. Unfortunately, however, Draghi delivered a more dovish post-meeting statement and, in all, the ECB meeting had very little impact on the global marketplace.
With the economies of the European Union still struggling mightily, everyone continues to wonder what, if anything, the ECB will do to quell mounting economic problems.
Looking ahead to next week, the focus of the market will continue to be on US equities as well as the progress of the US Dollar. Though the two aforementioned assets finished the week down, they still made weekly gains and are looking as strong as ever. Unfortunately for precious metals, the strength of the Dollar and equities is working as a weight, dragging spot values downward. Not helping things at all is the fact that crude oil is also continuing to trend downward, bringing all commodities with it.