Daily Market Report 05/04/12

GOLD
This morning, the U.S. Labor Department stated that our economy added just 115,000 jobs in April, below a forecast of 173,000 making the jobless rate 8.1%. Gold rallied $20 after the announcement because this added to the reasons why the Federal Reserve should consider QE3 to keep our economy from another recession. At 11am PDT, Gold is trading at $1,644.50, up $10.10 per ounce on the day and up $16 after the U.S. jobs announcement.  

The Federal Reserve has previously said that it would take deterioration in the labor market, while inflation stayed in check, for it to consider launching a third round of so-called quantitative easing. Additional accommodative policy is seen as unequivocally bullish for Gold as increased liquidity tends to debase the dollar and creates inflationary risks.

SILVER
Silver continued to show extraordinary support at the long term resistance $30 per ounce level. Again, this morning Silver sold off, reaching $29.75 per ounce in Asia, but quickly rallied back.  At 11am, Silver is up $0.20 on the day, trading at $30.39 per ounce on heavy volume for a Friday.