Gold Spot Price Open: $1,232
Gold Spot Price Close: $1,242
Change in Gold Spot Price: +$10
Silver Spot Price Open: $14.82
Silver Spot Price Close: $15.00
Change in Silver Spot Price: +$0.18
Precious metals, after falling ever so slightly on Tuesday, bounced back nicely on Friday. When all was said and done, gold gained close to ten dollars while silver picked close to 20 cents. After both metals gained yesterday, platinum and palladium moved back downwards ever so slightly.
Jobs Data May Not Need to be Overly Weak to Aid Metals
With the way things have been going lately across the global marketplace, there is a strong feeling that this week’s jobs data may not need to be overly disappointing in order to give precious metals a noticeable boost. This feeling stems from the fact that the only real consistent source of upbeat US economic news lately has been from the employment sector. With so many other areas of the US economy beginning to show signs of weakness, the employment sector is, in the opinion of many, keeping feelings towards the overall US economy optimistic. As such, if this week’s non-farm payrolls data misses the mark, investors may seek safe-haven in precious metals and other less risky investments.
In a report from the Federal Reserve made public today, it was reported that most districts across the US made progress from January through late February, however the data was sporadic at best. Consumer spending was up across most US Federal Reserve districts, the beige book said, however manufacturing is slowing down, and has been for a few months. With the Beige Book’s release today doing little to clarify what direction monetary policy might head in the next few months, all eyes are once again fixated on any and all employment data that will be dealt—starting with the weekly jobless claims report tomorrow.
Dollar Performs Well After Upbeat Jobs Report
As is customary, today brought about the payment processor ADP’s report on payrolls growth for the month of February. As a report that always precedes the non-farms report, the ADP data is often used to give investors a decent idea of what they can expect from the Labor Department’s report made public a few days later.
According to today’s ADP release, the US private-sector created more than 240,000 jobs during February. This was far better than expectations that amounted to no more than 190,000 being added. This data gave the US Dollar a good jump against the euro seeing as it surged to a 1-month high during the afternoon hours. Unfortunately, the greenback did not perform as well against the yen.
Though it may seem like a bit of a stretch, many are calling today’s ADP report and yesterday’s upbeat construction spending data as meaning that another rate hike by the US Federal Reserve might be possible in the coming months. With the FOMC’s meeting just around the corner, it will be interesting to see what the collective policymaking body of the Fed has to say about the possibility of further rate hikes; that is, if they comment on the matter at all. We all know how cryptic the Fed can be at times.
Wrap-Up
All in all, Wednesday brought about the same amount of economic data that we have been seeing all week long. Things will really begin to pick up tomorrow with the release of the weekly jobless claims report. That piece of data has and will continue to be eyed by anyone interested in the strength of the US employment sector. The European Central Bank is set to meet for their monthly policy meeting next week, and it will be interesting to see what, if any, changes to economic policy come from that.
