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    JM Bullion Gold and Silver Market Update (6/3/16)

    Gold Spot Price Open: $1,213

    Gold Spot Price Close: $1,246

    Change in Gold Spot Price: +$33

    Silver Spot Price Open: $16.07

    Silver Spot Price Close: $16.39

    Change in Silver Spot Price: +$0.32

    Precious metals were able to make up a lot of ground on Friday thanks to some key pieces of economic data being published. When all was said and done, gold managed to gain more than 30 dollars while silver tacked on 32 cents to close out the week. Platinum and palladium finished the week on a high too, with both metals picking up roughly 20 dollars.

    May Sees Slowest Job Growth in Half Decade

    While Thursday brought about 2 incredibly upbeat reports with regard to the employment sector of the US economy, Friday brought about a mixed bag of data to say the least. To recap, Thursday not only saw weekly jobless claims fall for the third consecutive week, it also saw ADP publish a private-sector jobs growth report that handily bested the expectations of the market. With those two data points to reflect upon, investors were certain that Friday’s non-farms payrolls report would come back just as strong, if not even stronger.

    Unfortunately, the US Labor Department released a report today that showed less than 40,000 new jobs were created during May. Not only does this figure fall far short of expectations, it is the worst single-month job growth we have seen in roughly 5 years. In addition to this, it was also reported that in upwards of 500,000 people abandoned their search for a job, indicating that perhaps the labor market is not as strong as most people think. The 38,000 new jobs that were added last month fell far short of the 155,000 expected by polled analysts.

    Naturally, investors are beginning to wonder if the Federal Reserve will even be able to raise rates this month as so many expect them to. Seeing as gold and silver jumped forward in the immediate wake of the non-farm payrolls report, there is a strong feeling that perhaps investors are rethinking just how likely an interest rate hike happening in June is. As we head into next week, all eyes will be on gold and silver, because if today’s gains are sustained and built upon, that will indicate a very clear feeling on the part of investors that interest rates are once again going to remain stagnant.
    Making today’s data a bit more confusing
    is the fact that the overall unemployment rate fell to 4.7%. This is confusing and has left a lot of investors extremely confused. While it is unclear what next week will bring, we can say with certainty that next week is going to be quite interesting.

    Wrap-Up

    Apart from the absorbing employment data dealt today, investors did not have much else to focus on. In fact, by the time markets open up next week I anticipate that today’s data will still be the topic of discussion. Beyond that, it is quite clear that interest rate hike speculation will pick up considerably. In a matter of 24 hours, we went from witnessing a marketplace that was confident rates would be hiked before month’s end to a marketplace that is unsure what will even happen one week from today.

    For gold and silver, prospects went from extremely bleak to promising in a short period of time as well. If more investors become convinced that interest rate hikes are not going to take place this month, or even next month, gold and silver will likely work on regaining much of what has been lost over the course of the past 3 or 4 weeks. We are in the midst of a very confusing scenario, and that is being reflected by the thoughts, opinions, and actions of investors across the globe.

    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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