Daily Market Report 9/7/12

GOLD

With the European Central Bank (ECB) announcement of a bond-purchase quantitative easing (QE) program yesterday, added to the U.S. Federal Reserve Board statement saying that they are prepared to step in with more assistance, which most people believe is more QE, it appears that the negative news is still coming in the US. This morning the US jobs report came out and the jobs numbers were far below expected (see below.) Gold had just gotten the 1-2 punch to not only hold above $1,700, but to trade up to a high of about $1,745 an ounce. Plus, when the jobs report was released almost 18,000 contracts of Gold (1,800,000 million ounces or over $3 billion worth) were traded immediately spiking Gold $25 in a matter of minutes.At 11am PDT, Gold is trading at $1,739.50, up $37.20 on excellent volume.

New Labor Department Report

The U.S. economy added 96,000 jobs in August, down from 141,000 in July, the Labor Department said today. The report is well below forecast and another sign of a fragile economic recovery. Economists polled by CNNMoney were expecting 120,000 jobs to be added. Economists say at least 150,000 jobs must be created each month simply to keep pace with the growing population. This information below was considered by the Gold market to be very bearish, therefore the feeling is that the Federal Reserve is highly likely to do a QE3 during its upcoming meeting this month and we saw Gold rally $30 on this news.

SILVER

Volume was much higher for Silver than the levels seen for much of the summer, which suggests that the doldrum days are indeed drawing to a close. At 11am PST Silver is at $33.76 per ounce, up $0.95 on high volume.

PLATINUM

South Africa’s AMCU union Friday said it won’t engage with Lonmin PLC until a wage offer is on the table, dealing a blow to the Platinum mining company’s hopes of getting employees back to work by Monday to end a four-week strike that has left 44 dead. At 11am PST Platinum is trading at $1,596 per ounce, up $10.