Precious Metals Market Feels “Heavy”

As I discussed in the Wednesday morning commentary, our market again felt “heavy” and I was looking for lower levels. With the USD moving higher, bond yields moving higher globally and crude oil falling below $60.00 we did probe lower, but so far physical demand has been quite good on the dips and we have held in the mid-$1,170.00s and $16.20s.

This morning brought us the much anticipated Non – Farm Payroll report for April with the hope that one way or another it would be the catalyst for moving us outside of the current trading range. Unfortunately for precious metals traders and investors, the data brought little surprise, the economic consensus was spot on as 223,000 new jobs were created last month with the unemployment rate falling to a seven-year low at 5.40 percent. Although it is “yesterday’s news,” in a further sign of how weak the U.S. economy was and perhaps still is, first quarter job creation in February and March were again revised down. All in all we are left with gold and silver still stuck in a trading range and looking for direction.

Have a good weekend,