Daily Market Report 5/6/16

GOLD

Gold rallied $20 this morning based on some bullish factors:

1. Starting June 1, China’s customs and central bank will allow companies that have done frequent Gold transactions crossing the border to apply for a single permit that will allow up to 12 Gold shipments per year. This should increase Chinese Gold demand.
2. In April, the U.S. economy added 160,000 jobs. This was the smallest increase in seven months and clearly disappointing. This small increase showed that employers eased up on hiring last month.

A break above $1,300 is coming next week.

At 11am PDT today, Gold is trading at $1,291, up $19 per ounce on excellent volume.

SILVER

Silver followed Gold’s move higher this morning. Physical demand for Silver investment products continues to grow. The U.S. Mint sold over a million ounces of 1oz Silver Eagles in the first week of May, the 2016 total now stands at almost 20 million .999 Silver Eagles. At 11am PDT today, Silver is up $0.22, trading at $17.50 per ounce on good volume.