Comex gold prices have sold off sharply and hit a fresh seven-week low following the release of a stronger-than-expected U.S. employment report Friday morning. December futures prices dropped below important technical support at the $1,700.00 level, which triggered pre-placed sell-stop orders and drove prices even lower. The U.S. dollar index surged to a fresh seven-week high following the U.S. jobs data, which in turn pressured the gold market. December gold last traded down $22.30 at $1,693.30 an ounce. Spot gold was last quoted down $21.30 at $1,694.25. December Comex silver last traded down $0.498 at $31.75 an ounce.
The key non-farm payrolls component of the U.S. jobs report came in at up 171,000 in October when it was forecast to come in at up 125,000. The September non-farm payrolls figure was also revised up. All in all, the market place perceived the latest U.S. employment report as a good one. Friday’s jobs report will start to sow the early seeds of what could be light at the end of the tunnel of all the monetary stimulus measures that have been implemented worldwide the past four years.
Such is theoretically bearish for the precious metals markets if one reckons that all the past monetary stimulus measures have been bullish for the metals. However, on the other side of that coin is the notion that if world economies are indeed on the upswing then worldwide demand for raw commodities will increase. . .View Full Article