Employment Surge Drives Investors Out Of "Safe-Haven" Assets

GOLD

This morning’s non-farm payroll numbers surged, up 266,000. The expected increase was 180,000. This is the biggest jump since January. The end of the GM strike boosted employment in motor vehicles and parts by 41,300, part of an overall 54,000 gain in manufacturing. This news drove up the U.S. equity markets and caused investors to move money out of “safe-haven” assets. Gold and Silver dropped, testing recent price support levels. Gold reached a low of $1,457 before finding bargain buying and short-covering. At 11am PT today, Gold is trading at $1,461 per ounce, down $17 on excellent volume.

SILVER

Silver dropped on the news with Gold, reaching a low of $16.48 per ounce, but quickly rallied back above the $16.50 support level. At 11am PT today, Silver is down $0.40 per ounce, trading at $16.58 on excellent volume.