Gold and silver have both made some fairly decent positive gains in response to some delayed US economic reports making their way to the public. In addition to delayed reports helping the prospect of precious metals, the shutdown’s long-term implications may also help boost safe-haven demand for gold and silver.
Now that the shutdown is over, the investing marketplace can focus their attention elsewhere. One of the points of interest making headlines is that of rising short-term interest rates in China. Though the situation is not out of control, if it continues the way it has it may force the Chinese government to alter their monetary policies.
Delayed Reports Making An Impact
During the over two week US government shutdown, many of the economic reports we hear throughout a given week were put on hold. Now that the shutdown has come to an end, however, many of the reports which were put on hold are making their way to the public. The first of these reports was the employment report from this past September. Market expectations indicated that non-farm payrolls would rise by almost 200,000, but actual figures came in about 50,000 less. Despite that, the unemployment rate was still able to fall from 7.3% to 7.2%.
While the news of the unemployment rate dropping was positive, investors took the weaker than expected jobs report as a sign of a stagnant US economy. In the immediate aftermath of the report stocks and the US Dollar declined in value, but gold and silver spot values rose dramatically. Though investors will only focus on this delayed report for a few days, it may be an early indication of what we can expect to see from economic reports to close out the year.
If the economy does appear to be hurt as more reports are released, it will only grow the belief that the Fed no longer has any chance of altering monetary policies in the US. As of now it is just a waiting game as we will begin to develop a clearer picture of the US economy’s status in the coming days and weeks.