Champagne on Wall Street and Jobs, Jobs, Jobs…
The Dow hit 22,000 this week, achieving a new record high, however precious metals have been holding their own despite the big party on Wall Street. Those loud popping noises you’ve been hearing are all the champagne bottle corks flying in every direction.
Gold is coming off a six-week high this week, however as we all know too well, the monthly U.S. employment report from our Labor Department is most certainly a key indicator of price swings at this same point every month. Out this morning, U.S. added 209,000 jobs in July with unemployment dropping from 4.4 to 4.3, that’s the lowest in about 16 years. Also on the positive side, wages are up slightly by .3%, that puts wages up 2.5% from last year at this time. Gold was immediately affected when this news hit, dropping about $7 from $1,268.80. Gold is hanging tough at $1,262.70 at the time of this writing.
Safe haven demand for gold is likely to remain active and high, given the spikes we see every time Kim Jong Un gets the inclination to test another of his intercontinental ballistic missiles. Does anyone else wonder about his surplus?
The U.S. Dollar Index hit a 13-month low on Wednesday of this week, boosting the precious metals trade in both gold and silver. One hopes this boost will continue to provide a hedge for metals traders.
Silver prices have been on the rise for the fourth straight week, but it was dinged by .18 when the Jobs report was announced this morning and is currently trading at $16.63.
It’s been a busy and productive week. So have a wonderful and safe weekend…
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