Gold breaks out; jobs report is weak
In anticipation of the job's report, the markets and gold jumped yesterday, but there was no good news for President Obama as Friday's report shows the US added a paltry 96,000 jobs in August.
Spot gold jumped firmly above the $1,700 level yesterday and is now trading at $1,735/oz. The markets also climbed. The Dow Jones Industrial Average is up two percent since Wednesday adding 262.82 points. The S&P/TSX Composite index also rose 2.36% since mid-week.
The markets may have been hoping for a better job's report than the one they got. Economists were expecting 125,000 jobs.
To date there have been 139,000 jobs per month added on average, while last year the US economy was adding 153,000. Just two jobs report remain between now and election day set for Nov. 6. Unemployment is currently at 8.1%.
Eyes turn to the Federal Reserve where Ben Bernanke may be force to act to stem unemployment, one of the central bank's mandates.
Other precious metals are up. Over the last week spot silver had added $1.80 and is trading at $33.6/oz. Platinum added $20 and is at US$1,600/oz.
Oil also headed up in anticipation of the job's report, but since the news there has been a 57 cents drop in brent crude oil futures, which is now at $112.92 a barrel. US crude sunk 68 cents to $94.85.