We received quite a few questions about today’s employment numbers and we though we’ll share our take on them. The U.S. economy added the fewest number of jobs in seven months and the result is that “market-based measures of Fed policy expectations have virtually priced out an interest rate increase at the Fed's June 14-15 meeting, according to CME Group's FedWatch. They see a less than 50 percent probability of rate hikes in September and November, with a 59 percent chance at the December meeting.”

The markets priced out an interest rate in June and market views the chance for a hike in December at only 59% and… The USD Index declined by mere 0.13 while silver moved higher by 3 cents (at the moment of writing these words) - next to nothing. Gold is up $8, which is a small increase compared to the change in the expectations regarding interest rates. After only a little movement to the upside given USD’s decline just a few days ago, this is yet another moment when precious metals are barely reacting to bullish news.

Nothing changed in the technical picture for the precious metals today and the strength of reaction (“weakness of reaction” would be a more appropriate description) is a bearish sign. Consequently, we are keeping the current positions intact.

Thank you.

Sincerely,
Przemyslaw Radomski, CFA
Founder, Editor-in-chief, Gold & Silver Fund Manager

Gold & Silver Trading Alerts
Forex Trading Alerts
Oil Investment Updates
Oil Trading Alerts