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    JM Bullion Gold and Silver Market Update (9/4/15)

    Gold Spot Price Open: $1,126

    Gold Spot Price Close: $1,123

    Change in Gold Spot Price: -$3

    Silver Spot Price Open: $14.77

    Silver Spot Price Close: $14.66

    Change in Silver Spot Price: -$0.11

    Precious metals backed down on Friday despite a US jobs data report that came back a bit weaker than what was expected. When all was said and done, gold lost a few dollars while silver moved backwards by about ten cents. Platinum and palladium posted mixed results to end the week as platinum lost more than ten dollars while palladium managed to gain nearly 5.

    US Jobs Data Disappoints…Kind Of

    Straight from the offing this week the market had its eyes fixated on today’s employment-related data release from the US. After the mid-week brought about a disappointing ADP report regarding private-sector job growth, the market immediately became worried about what today’s data might show. Those worries were more or les validated when it was reported that only about 173,000 new jobs were created last month. With expectations holding that at least 220,000 new jobs would be created in August, today’s data was a major miss. Normally, this might push spot values forward, but the Labor Department went on to show that the overall unemployment rate fell to just 5.1%. This, in truth, makes today’s data more of a wash with the disappointing August figures counteracted by the fact that the unemployment rate fell.

    US stocks took a bit of a dive thanks to this data because now investors are wondering whether interest rates are actually going to be risen or not. As we head into next week you can expect that the focus of the market will continue to be placed on any and all economic data from the United States. This is especially true after the somewhat disappointing tone of today’s jobs data.

    Eyes Turn to September Fed Meeting

    With their scheduled meeting less than two weeks away, the marketplace is beginning to turn their undivided attention to what the FOMC might have to say at their monthly meeting. As it stands, there is a big divide with some investors thinking that interest rates will be risen within a few weeks while others are not yet convinced that the market will see raised interest rates until October at the earliest.

    The uncertainty surrounding China’s economy is one of the biggest factors causing investors to believe that interest rate hikes may still be a while off. Just this week we received a bunch of poor data from China in addition to witnessing their main stock index lose a lot of value. To put it bluntly, the under performance on the part of China’s economy is something that the Fed is definitely going to have to consider before raising interest rates. What’s more, the US economy is home to plenty of questions as well. Employment data for the month of August has taken a step backwards, so that definitely works against the likelihood that interest rates will be risen next month.

    Wrap-Up

    And so begins the waiting game. From now until two Wednesdays from now, the marketplace is going to be almost wholly preoccupied with what is going on in the US and China. I highly doubt that we will hear much of any commentary from member of the Fed as they absolutely love being as cryptic and secretive as possible. It is impossible  to say for sure what the next few weeks have in store, but I can say that they are sure to be quite exciting.

    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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