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    JM Bullion Gold and Silver Market Update (2/11/16)

    Gold Spot Price Open: $1,194

    Gold Spot Price Close: $1,245

    Change in Gold Spot Price: +$51

    Silver Spot Price Open: $15.28

    Silver Spot Price Close: $15.78

    Change in Silver Spot Price: +$0.50

    Gold and silver both made extremely large gains on Thursday thanks to investors more readily seeking to safeguard themselves from uncertain economic times that seem to be just beginning. When all was said and done on Thursday, gold gained more than 50 dollars while silver improved by about 50 cents. Platinum and palladium finished the day upward with platinum gaining more than 20 dollars while palladium gained only a few dollars.

    Metals Make Nice Strides Forward

    After stalling a bit on Wednesday, precious metals bounced back dramatically on Thursday. Officially, gold picked up more than 4% on Thursday as fears over the stability of the global economy only grow bigger. Also prompting the safe-haven demand for precious metals this week is the fact that the US Dollar finished lower and lower with each passing day.

    European bank stocks have been falling for a while now and have recently hit multi-year lows with no signs of slowing up. This only adds to the fears investors have with regard to the wider global economy and its ability to grow throughout the rest of the year. A Julius Baer analyst commented on what routes investors are pursuing, and advised that “the safe-haven seekers are moving back. We recommend clients add gold to their portfolios as insurance, if things turn out really bad, there will be much more upside.”

    Basically, what we are seeing is investors buying into gold and silver because they are fearing that the absolutely worst-case scenario will play out over the course of the next few months. Should the global economy, or any single major economy (China, Germany, United States), slip into recessionary conditions, this will breed a trading environment that sees gold have a lot of room for upward movement. If things stay the course they have been on for the past few weeks, buying into precious metals is still a good thing as their momentum and current trajectory suggest that a move higher in the near-term is possible. Whether this proves to be the case or not, however, remains to be seen. Heading into the final day of the week it will be intriguing to see if gold and silver can finish out the week strongly, or if profit-taking after today’s large gains will drive spot values back downward.

    Weekly Jobless Claims Fall by More Than 15k

    The Labor Department announced today that first-time claims for unemployment fell last week by more than 15,000. This brings the seasonally adjusted average beneath 270,000 for the first time in the past few weeks.

    As we say most every week, the 4-week moving average of first-time claims is the most important piece of employment data given on a weekly basis. Today, the Labor Department announced that the 4-week moving average fell by 3,500 claims. This reading is often viewed as the best snapchat image of how employment in the US is doing at any given moment in time.

    Still, with all this upbeat employment data equities in the US still had a rough day.

    Wrap-Up

    As we look ahead to tomorrow, there isn’t much on the slate as far as economic data is concerned. It will be really interesting to see if gold and silver can sustain today’s gains at all. I would not be surprised to see some drastic profit-taking to close out the week, but with the momentum metals have been exhibiting lately I would not be surprised to see these gains extend through the final day of the week.

    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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