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    JM Bullion Gold and Silver Market Update (5/6/15)

    Gold Spot Price Open: $1,195

    Gold Spot Price Close: $1,192

    Change in Gold Spot Price: -$3

    Silver Spot Price Open: $16.61

    Silver Spot Price Close: $16.57

    Change in Silver Spot Price: -$0.04

    Precious metals backed down a bit from yesterday’s gains, but losses were mitigated thanks to stronger crude oil and some downbeat US economic data. When all was said and done, gold lost about three dollars while silver declined by only a few pennies. Platinum and palladium didn’t have a great day and ended more or less exactly where they started.

    ADP Report Deemed A Huge Miss

    As you are more than likely well-aware, the biggest event of this week will come Friday in the form of the Labor Department’s report on April employment. Today offered up a bit of an appetizer in the form of the most recent ADP employment report for April. According to the figures, just shy of 170,000 new jobs were added to the economy last month. Seeing as expectations were for job growth well above 200,000, it is disappointing for investors to see such disappointing figures.

    Now, the eyes of the marketplace are looking ahead to Friday and the employment report that is expected to be released. Expectations are still for job growth somewhere in the neighborhood of 220,000, but plenty of investors have their doubts about whether those lofty employment growth goals will be reached or not. As a result of today’s disappointing employment data, the USD backed off from recent highs and lost almost 1% today alone. The greenback has been faltering recently, and this is just one more example of that.

    Crude Oil Continue to Rise

    For yet another day, crude oil picked up value and hit another monthly high. During intraday trading, the spot value of crude oil hit above $62/barrel, which is a 5-month high. Despite gold and silver suffering from a bit of a corrective pullback, today’s upbeat crude oil performance somewhat assuaged losses. We will continue to keep an eye on crude oil’s price action as it will have a direct impact on the price of precious metals moving forward.

    Mixed European Economic Data

    Today brought about some European economic data, but by the time things were wrapped up, the data was more of a miss than anything else. During the early morning hours, the EU’s Markit services PMI was released and showed a reading for April that was none too different than March’s. Considering expectations were for a slight PMI decrease, it is easy to see why today’s data was welcomed with open arms.

    More or less counteracting the upbeat PMI report was a retail sales report from March that showed a .8% decline in retail sales from March to February. Expectations were for March retail sales to improve by a few tenths of a percent, so today’s data was a major miss. Europe has recently been performing well from an economic standpoint, so it will be interesting to see how the rest of this and next week’s reports fare.

    Wrap-Up

    All in all, today was another slow day for the global marketplace. Apart from what we saw in Europe, there really wasn’t much economic data to talk about. Naturally, as we head further into this week, investors will begin to more readily discuss what they can expect from Friday’s employment report. Conventional thought would lead you to believe that, because today’s ADP report was a miss, Friday’s will be too; but that is no guarantee. All in all, it will be quite intriguing to see what Friday brings for the global economy.

    Disclaimer: 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.

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