Weak Jobs Report Boosts Gold Price

  • Posted Friday, June 06, 2014 at 01:35 PM

Los Angeles CA, June 6 (Tangible Investments) - by James O’Dell - Gold turned sharply higher on bargain hunting and short covering on Thursday, gaining $9.65 or 0.78 percent to close at $1,253.35 an ounce after the European Central Bank (ECB) promised another round of liquidity and record rate cuts, but investors remain cautious ahead of Friday's key jobs report. Silver jumped $0.25 or 1.33 percent to close at $19.06 an ounce, while the gold/silver ratio fell to 65.76.
 
In their battle against deflation, ECB policymakers pushed the deposit rate into negative territory on Thursday, in efforts to coax banks into boosting lending, and are considering a form of quantitative easing (QE) similar to the Fed. "The single biggest threat to the global economy is the threat of deflation," wrote CNBC contributor Ron Insana. "I believe that lack of societal memory is one reason people have difficulty believing that the war on deflation is required to be as dramatic—and as long— as the war [on inflation] that started 43 years ago."

Meanwhile, the U.S. labor market reports that just 217,000 new jobs were created in May, and while that number falls within economist’s expectations of between 214,000 and 220,000 new jobs, it falls far below April's total of 282,000 jobs. April's numbers were downwardly revised to 282,000 jobs from an initial report of 288,000 making the report even worse. The unemployment rate remains unchanged at 6.3 percent, while consensus estimates were calling for the rate to tick up one notch to 6.4 percent, but a decline in the participation rate prevented the move.
 
Five years after the Great Recession ended, the nation has finally replaced all the jobs that were lost, unfortunately, the population has grown nearly 7 percent. Seven million more jobs are now needed to keep up with that population growth.
 
Preserve your wealth and secure your retirement by making a tangible investment in physical Gold and Silver in 2014. Call Toll Free 1.800.741.5014 and allow the friendly staff at Tangible Investments (learn about us here), owned and operated by world-renowned coin expert Silvano DiGenova, to assist you in your next purchase or sale. We hope you will share our site with your friends on Twitter and Facebook, but whatever you do, don't leave the site before claiming your Free Coin.

Get a Free Gold Investor's Guide
Metal BID ASK CHG$ CHG%
Gold 1287.60 1288.30 $4.15 0.32%
Silver 19.49 19.53 $0.00 0.00%
Platinum 1426.50 1429.50 $0.50 0.04%
Palladium 902.20 905.20 $2.30 0.25%
Are you sufficiently diversified? Our founder and president, Silvano DiGenova, explains why hard assets are essential to your portfolio. [Read more]
If you’re a collector of rare or beautiful items, you’re in the right place. We welcome you to visit the eBay store for Tangible Investments, America’s top buyer of rare coins! [Visit Now]
Get paid the most for your items from one of the nation’s most trusted firms. We buy bullion, coins, jewelry, watches, fine art, antiques, and collectibles. [Read More]