Posted on January 07, 2016
Gold Spot Price Open: $1,093
Gold Spot Price Close: $1,111
Change in Gold Spot Price: +$18
Silver Spot Price Open: $14.04
Silver Spot Price Close: $14.38
Change in Silver Spot Price: +$0.34
For a second consecutive day, gold and silver both posted some impressive results on a week that has been fairly good to precious metals. When all was said and done, gold picked up more than 15 dollars while silver managed to gain more than thirty cents. Platinum and palladium finished the day mixed, with palladium down by more than fifteen dollars while platinum managed to gain a dollar or two.
In a report released earlier this morning, it was shown that unemployment across the 19-member European Union was down to lows that we have not seen in nearly 5 years. With this data comes a renewed sense of belief that the European economy may be showing some solid signs of recovery. If you can remember, the EU has been pursuing easy money policies for little more than a year, and this devaluation of the Euro has helped spur economic growth—seen in the number of people who are now able to find work.
According to the Eurostat data, unemployment across the EU fell to 10.5% in November after being recorded at 10.6% the month before. This is the lowest rate of unemployment since October of 2011. While the one tenth of one percent figure may not seem like much, this means that about 130,000 people were able to find work between October and November.
All is not fine and well with Europe, because we are still witnessing a situation where the stronger economies are picking up the slack created by countries such as Greece and Spain. Chief among Europe’s top performers is Germany, who has long been the top economy in the EU. Growth where one country is supporting the growth deficiencies of other, weaker economies is not sustainable and is something that will threaten to undo any economic progress made by the EU over the past year.
As the marketplace patiently awaits the release of December’s non-farm payrolls report, which is due out tomorrow afternoon, they were dealt a bit of other employment data in the form of the weekly jobless claims report. According to the Labor Department, US weekly jobless claims from last week fell by 10,000 to an adjusted rate of 277,000. This only adds to a long run of employment data from the US that has been upbeat in nature. In fact, as we look ahead to the rest of 2016, early indications are that we may see yet another strong year of growth.
Tomorrow will bring about the non-farm payrolls report for the month of December and it is expected that we will see growth of more than 200,000 jobs. If this does prove to be the case, we can reflect on 2015 as being the second-best year for job creation in the last decade. Even with the overall global economy slowing down, it seems as though the US economy will continue to plug along.
Having a positive week to reflect on thus far, investors are expecting that gold and silver will continue to gain through the final day of the week. Rising geopolitical tensions are gripping the marketplace and spurring safe-haven demand, which is in turn pushing spot values upward. As we look forward to next week, it will be interesting to see if gold and silver can continue this impressive start to the new year or if we are going to delve back into a stream of consecutive losses much like we witnessed during the last few weeks of 2016.