Home InfoVault Market Reports May Jobs Report Dramatically Boosts Gold

May Jobs Report Dramatically Boosts Gold

May Jobs Report Dramatically Boosts Gold
Category: Market Reports
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Posted: 06-03-2016

All this news giving Gold and Silver the boost we all were hoping for.

It will be very interesting to hear what the Fed presidents NOW have to say after this very weak May jobs report. Only 38,000 jobs were created in May, way below the 160,000 jobs number the street had expected. Also reported today, revisions to the March and April jobs number, adjusted down a combined 59,000 jobs. May’s job number was the lowest since September 2010.

As soon as this very unexpected number was released, gold exploded to the upside from $1,212.00 to $1,238.60 in the August contract. In my opinion, this not only takes a June rate hike off the table, but the number was SO bad, it handcuffs the Fed from even considering a rate hike in July.

As I’ve been indicating from the start of year, I don’t expect any rate hike in 2016 because I believe the data will not be there to support a rate hike as the U. S. economy slows down. Looking in the rearview mirror, let’s not forget that weak first quarter GDP report up .5 percent then adjusted later to .8 percent. And now this news, it would be a complete shocker to the markets and destroy any credibility the Fed has, and that’s not much these days, if they pull a surprise in either June or July. I can’t imagine how the markets would react. Scary.

Gold ETFs back in the news today as we witnessed a modest inflow yesterday.

Besides the big news in the Gold and Silver markets today, we are watching the Dollar Index getting hammered off this weak data, down 1.40.

All this news giving Gold and Silver the boost we all were hoping for.

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About The Author

Walter Pehowich Author Name: Walter Pehowich
This editorial has been prepared by Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not prove to be true, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept the foregoing.

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