Gold Spot Price Open: $1,222
Gold Spot Price Close: $1,244
Change in Gold Spot Price: +$22
Silver Spot Price Open: $19.16
Silver Spot Price Close: $19.74
Change in Silver Spot Price: +$0.58
Despite some better than expected US jobs data, gold and silver were both able to make decent gains on Wednesday. When all was said and done, gold picked up 22 dollars while silver gained a little over a half dollar. Bargain hunting after gold hit a new 5-month low yesterday is being cited as the reason gold and silver both managed to post gains today.
Today marked the released of the ADP National Employment Report for November, and the numbers came in far better than expected. Compared to an expected increase of about 170,000 workers added to the workforce in November, actual figures showed that over 210,000 workers were added. This data coming in much stronger than expected was bad news for precious metals, but with bargain hunters out in full force the data was not able to put all that much downward pressure on gold and silver.
The release of the Federal Reserve’s beige book was another point of interest for investors, but when it made its way to the public the market did not react to it much at all. Tomorrow is when the European Central Bank will meet for its monthly policy meeting, while the latest US jobs figures are due out on Friday. For many investors, the last two days of the week are the most important due to the jobs data as well as tomorrow’s US GDP report. Bargain hunters will likely still be out buying precious metals tomorrow, but after today’s gains they may not be as numbered as they were today. The overriding concern for investors is still the timing of the FOMC’s tapering of Quantitative Easing, which we will hopefully find out more about in the coming weeks. With the December FOMC meeting looming, some investors are growing increasingly confident that QE will be tapered before the year’s end. With that being said, however, this would not be the first time a majority of investors were convinced QE would be wound down at the next meeting.
With a majority of the next few days’ economic data expected to be indicative of a healthy US economy, the prospects of gold and silver mirroring the gains made today is fading
