Gold and silver started the last day of the week down a decent margin as a better than expected employment report is more or less the only story making headlines today. For a large part of the week precious metals have been faring well, though all of those gains were lost on Friday as metals ended the day in worse standing then when they had started. There were some big reports due out towards the end of the week and they did well to impact the metals marketplace.
US Economic Data
There was a decent amount of economic data released out of the US all week, as there usually is. This week’s data primarily focused on the outlook of US jobs and jobless claims and as weekly jobless claims came in higher than expected last week, a renewed focus was always going to be put on this week’s data.
The marquis report out of the US was Friday’s employment report which was expected be positive. Non-farm jobs were expected to be reported as having increased by about 170,000. When the report first broke, it was announced that non-farm job increases were even greater, though only by a little at 175,000. This news was great for the US economy but almost immediately caused gold and silver to take nose dives.
Many believe that this employment report is the most vital such report in years and will swing the Fed in the direction of solidifying their winding down of Quantitative Easing in the United States. Though it is still uncertain what the fate of monetary policy in the US will be, one thing that is for certain is the fact that all economic news out of the US will be hawked over by investors and market watchers until the Fed decides one way or another what they are going to do with QE.
Europe and Asia Struggling
Over the course of the past two weeks or so, the Japanese Nikkei Index has been taking some major hits. Over that time span, the NIkkei Index lost nearly 20% of its value, the largest such decline in a long time. In addition to that, Chinese stocks fell as well this week. Overall the outlook on Asian markets is weak, and so long as the Nikkei Index continues its downward slide, investors will be wary of what they do with their money in the region. The only good news to report is that the Yen was able to make some small gains against the US Dollar this week, though with a weaker than normal USD Index for a majority of this week, such news comes as little surprise.
The European Central Bank as well as the Bank of England had meetings on Thursday, though neither entity announced any policy changes as interest rates also remained unchanged. It is no secret that Europe is in dire need of economic help, but with their central banks and leaders doing little to nothing to resolve mounting issues, it is hard to imagine that economies in the region are just going to magically fix themselves.
As we move into next week there are no major announcements being awaited by precious metals investors, which means that all the attention will be focused on any and all economic data coming out of the United States.
Gold opened up on Monday at about $1,391, and while everyone was hoping for a $1,400+ finish, the metal actually moved backwards. When all was said and done on Friday gold was sitting at $1,383.
Silver started the week at $22.33 and when Friday finished it was at $21.69.
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