Gold Spot Price Open: $1,226
Gold Spot Price Close: $1,219
Change in Gold Spot Price: -$7
Silver Spot Price Open: $16.97
Silver Spot Price Close: $16.64
Change in Silver Spot Price: -$0.33
Precious metals back-tracked on Thursday thanks to some commentary as well as economic data that acted as bearish factors from midday on forward. When all was said and done, gold ended up losing about a dollar or two while silver fell by about 15 cents. Platinum finished the day in about the same position it was in when things opened up, but palladium tacked on about 12 dollars.
More Upbeat Jobless Claims Data
Despite the US economy’s many inconsistencies, one facet of things has been consistent for the better part of the past year and beyond—the weekly jobless claims report. Today we were on the receiving end of yet another data point that defied expectations and reaffirmed the belief that the US job market is as healthy as can be. In fact, today’s weekly jobless claims report showed that the number of Americans filing for first-time unemployment benefits last week fell to a more than 40-year low. What’s more, we are now approaching 90 consecutive weeks where the number of people filing for unemployment benefits has remained below the 300,000 mark.
Officially, the number of people seeking unemployment benefits for the first time fell last week from the week before by 19,000. This brings the seasonally-adjusted average down to 235,000. When you consider that expectations were for a seasonally-adjusted average that would remain in and around the 250,000 mark, this news was welcomed with open arms by monetary policy hawks who would like to see rates raised come the December FOMC meeting. For precious metals, the overtly positive tone of today’s report meant that anything other than losses were always going to be difficult to come by.
To add icing on the cake, the 4-week moving average of jobless claims—often viewed as the most accurate snapshot of what the labor market looks like right now—fell by almost 7,000. All things considered, there are plenty of jobs to be had in the United States and that only seems to be growing truer and truer with each passing week.
Yellen Comments on Rate Hikes, Dollar Reacts
Federal Reserve Chair Janet Yellen made an appearance before the Congressional Joint Economic Committee today, and her words added fuel to December rate hike expectations. With so many people wondering what, if anything, Donald Trump’s election means for the future of interest rates, Yellen did well to quell those fears. Despite Conservatives taking over on Capitol Hill, Yellen made it clear that the rate hike outlook has not changed and that hikes can be expected to take place “relatively soon.”
She went on to say that beyond the hike that will take place presumably in December, gradual hikes should follow. There is no saying what will actually happen once Trump actually assumes his role of President of the United States, but for now investors were happy to hear that the Fed is holding steadfast to their belief that current economic conditions do, in fact, justify a rate hike.
Wrap-Up
Thursday offered up a bit more activity than most other days this week, but by the time the dust settled it was clear to see that these talking points did not result in much market moving. The Dollar is still sitting right around a 13-month high and crude oil prices are suffering. This has been the case and is expected to continue being the case going forward, and what this really means is that it is going to be difficult for precious metals to mount any sort of sustained rally.
