Posted on August 02, 2013
Gold Spot Price Open: $1,312
Gold Spot Price Close: $1,313
Change in Gold Spot Price: +$1
Silver Spot Price Open: $19.72
Silver Spot Price Close: $19.94
Change in Silver Spot Price:+$0.22
Gold and silver were given small boosts by a weaker than expected US jobs report which was released on the last day of the week. When all was said and done, gold managed to gain about a dollar while silver picked up just over 20 cents.
In the lead-up to this meeting, market experts were expecting that the jobs report would see non-farm payrolls rise by about 175,000 which would cause the unemployment rate to fall by a tenth of a percentage point. Though a positive US jobs report is beneficial to the average American citizen, it is actually quite adversarial to the spot value of gold and silver.
When Friday came around, investors were shocked to hear that non-farm payrolls rose by a figure of about 162,000. While this number is, in the big picture, very close to the projected $175,000, it coming in weaker than expected actually ended up helping gold. The fact that it improved the spot value of gold sounds better than it actually is because gold only managed to gain 1 single dollar on the day. Silver also saw its spot value improved thanks to the weaker US jobs data, but this gain too was nothing major.
Even though the Federal Open Market Committee meeting was today, a lot of investors tuned out due to the fact that the meeting’s prepared text was released earlier this week. In case you missed it, the FOMC more or less restated what Ben Bernanke had to say a few weeks ago, claiming that monetary policy will remain unchanged for the time being. Barring a major shift in the economic atmosphere in the US, the Fed feels as though Quantitative Easing, the government’s monthly bond-buying program, needs to be retained for the time being.
This news shattered what remained of the circulating belief that QE was going to be done away with by the end of the 2013 calendar year.