Positive Job Numbers Impact Gold

The all anticipated report on job numbers for March was released this morning, showing an increase in 215,000 jobs. Unemployment was at 5%, March government jobs up 20,000 and hourly earnings were up 0.3%. Looks like the economy is picking up.

These numbers give ammunition to the FED governors who argue their point that higher interest rates are in order at the next Fed meeting. Anticipated higher interest rates have put pressure on gold and silver prices this morning. At the time of this report we see gold down 16 dollars and silver trading below the important 15 dollar level.

Inflows resumed in the gold ETFs overnight and silver continues its strong accumulation in its fund holdings. These job numbers should have the ETFs’ short term investors heading for the exits, putting more pressure on precious metal prices today.

After seeing the jobs report this morning, some Wall Street spec traders report going short the June gold contract is an investment they feel comfortable in making.
We will just have to wait and see where this goes. With negative interest rates still a story that deserves attention and countries around the globe in a recession, I’ll take the other side of their trade and believe they will be wrong.

(Don’t tell them I said that!)

Have a wonderful Friday and beware of the April Fool’s day pranks.