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    JM Bullion Gold and Silver Market Update (12/5/14)

    Gold Spot Price Open: $1,208

    Gold Spot Price Close: $1,192

    Change in Gold Spot Price: -$16

    Silver Spot Price Open: $16.61

    Silver Spot Price Close: $16.35

    Change in Silver Spot Price: -$0.26

    Precious metals began the day trending slightly downward, but upon the release of November’s employment data were driven downward even further. When all was said and done, gold lost more than sixteen dollars while silver was down by about 26 cents. Platinum and palladium finished the day mixed, but neither metal really moved too far from their opening price.

    Jobs Data Beats Expectations By A Long Shot

    As was stated yesterday, polled experts were anticipating, yet again, that about 230,000 non-farm jobs were added to the US economy during November. This expectation was none too different than last month’s, though if you remember, last month’s employment data for October fell far short of expectations.

    This time around, however, it was reported that more than 320,000 new non-farm jobs were added to the economy a month ago. This number handily defeated the expectations of experts and the market and provided the US equity market with quite a boost. Not only that, it also provided the US Dollar with considerable lift such that the greenback will end the week in upbeat fashion. For gold and silver, as expected, this upbeat report almost instantaneously saw spot values edge downward. While things definitely could have been worse, the way this week started had us thinking that metals might finally be able to add some decent value. Instead, metals have only improved marginally and are under threat of having those gains pared by delayed reaction to today’s jobs data by investors from around the world who may not have had the chance to react to today’s data.

    EU Data Doesn’t Impress

    It is no secret that the EU economy is struggling mightily at the present moment in time. This is just one of the many reasons why some investors were expecting to hear of a monetary policy shift at yesterday’s European Central Bank meeting. Unfortunately, no changes were made to EU monetary policy yesterday and, though it should come as no surprise, the market was dealt just a little bit more sub-par EU economic data.

    During the early morning and overnight hours of today, it was reported that third-quarter GDP for the European Union came in at up .2% from the second quarter and up .8% on an annualized basis. Though this was about in line with what the market was expecting, it was a none too favorable report and once again drove home the widespread belief that the EU is in need of more monetary stimulus.

    Though no monetary stimulus measures were announced at yesterday’s European Central Bank meeting, ECB president Mario Draghi made it clear that he and his colleagues would be seriously considering the implementation of QE throughout 2015’s first quarter. Though he did not say that the European Union was definitely going to pursue QE, the market is convinced that that is the only way by which the collection of EU economies will recover from their current economic downturn.

    Ukraine Pursues Lasting Peace

    Today, fighting factions that litter Eastern Ukraine are going to lay down their weapons as part of a government-brokered ceasefire meant to be the beginning of a longer-lasting truce between warring sides. Though we have not talked too much about the fighting in Ukraine recently, it is still going on and does not seem to have evolved much since late summer when fighting in Ukraine couldn’t stay out of the headlines.
    Though the fighting has not had much of an impact on the wider market, a lasting ceasefire could definitely catch the attention of investors as it would decrease the volatility of a very important region of Europe.


    Looking ahead to next week, you can bet that we will open up the week off with delayed reaction from today’s US employment data. For precious metals, this delayed reaction may not be all that favorable. Apart from that, the market will have plenty of economic data to pour over throughout next week from the United States and other major economies. Though the next 5-day trading session may not be as active as this one was, there will still be plenty of information and data for investors to consider and discuss.

    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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