JM Bullion Gold and Silver Market Update (1/6/17)

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Gold Spot Price Open: $1,184

Gold Spot Price Close: $1,175

Change in Gold Spot Price: -$9

Silver Spot Price Open: $16.62

Silver Spot Price Close: $16.44

Change in Silver Spot Price: -$0.18

Precious metals gained at almost every turn this week, however they ended the final day moving in the opposite direction. When all was said and done on Friday, gold ended up losing about 9 dollars while silver lost more than 15 cents. Platinum and palladium finished the day mixed, with platinum losing a few dollars while palladium gained about 15.

Dollar Rises on Jobs Data

This week, though somewhat shortened due to the recognition of the New Year’s holiday on Monday, brought with it a good bit of economic data from the United States. Despite most of this data being relatively upbeat, precious metals were seen gaining strength while the Dollar was backing off of multi-month and year highs. Friday brought about the exact opposite as the Dollar rebounded to some extent.

On Friday, the US Department of Labor released their job growth figures for the month of December. Even though most experts were anticipating at least 175,000 jobs to have been added to the US economy last month, the actual data showed that the mark was missed by almost 20,000. Officially, there were 156,000 new jobs added to the US economy in December. Though you might think that this data would drive the Dollar downward, the fact of the matter is that a revision to November’s job figures was enough to help the USD bounce back.

Initial reports in November claimed that only 178,000 new jobs were added to the economy. Even though this level of growth was welcomed with open arms by investors, monetary policy hawks, and market watchers, the US Department of Labor revised this figure upward to reflect 204,000 jobs having been created in November. Thanks to this report, and some profit-taking in the precious metals market, the Dollar was able to regain some of its footing to close out the week. In addition, the upwardly revised data does well to lead investors to thinking that further interest rate hikes are soon to become a reality. As you have probably gathered by this point, that is not something that bodes well for precious metals.

Corrective Pullback Sinks Metals

After striding forward somewhat impressively all week, gold, silver, and most other precious metals ended the day Friday having accrued daily losses. This corrective pullback is being attributed to profit-taking after recent gains. Investors that have made money this week due to gold and silver’s appreciation are cashing in on those gains, and this is contributing to today’s losses.

Whether or not this corrective pullback is something that will last into next week remains to be seen. Overseas investors will likely start off the day on Monday by reacting to this piece of labor data, however it is not likely that we will see much of a change as far as spot values are concerned. Other than the labor data released in the US on Friday, there wasn’t all that much other economic data to speak of, making for a siarly slow day.

Wrap-Up

All things considered, Friday was somewhat uneventful. The jobs data, though a net positive, was not met with too drastic a reaction on the part of investors. As we look ahead to next week, it is likely that more and more economic data will make its way into the US and global marketplaces. What’s more, with Donald Trump’s inauguration as President of the United States just days away, you can bet that there will be increased speculation as to what will happen when he finally takes office. This is something that is sure to impact precious metals, though it is unclear exactly how.

All Market Updates are provided as a third party analysis and do not necessarily reflect the explicit views of JM Bullion Inc. and should not be construed as financial advice.