Gold and silver gave back a lot of yesterday’s gains on a day where economic data beat market expectations by a long shot. Both the US GDP report and weekly jobless claims report were upbeat, and in turn caused gold and silver to concede the gains they made on Wednesday thanks to bargain-hunting.
Tomorrow marks the release of the employment report for November, and if it is positive gold and silver can expect to have another rough day to close out the week.
Upbeat Economic Data
Today was a day full of economic data, and for the most part it was positive. Not only did today’s GDP report market expectations, but this week’s jobless claims were down from only a week ago. While gold gained over 20 dollars and silver picked up just about a half dollar on Wednesday, those gains were quickly erased on Thursday. It is now thought that gold and silver are both near the bottom of the market as far as spot values are concerned, but with more economic data and the December FOMC meeting upcoming, there is no saying how far the spot values of gold and silver may drop.
Tomorrow’s employment report for November is expected to show about a 175,000 rise in non-farm payrolls, though many people are expecting non-farm payrolls to rise by even more than that.
In other news today, the European Central Bank policy meeting kicked off and was capped by president Mario Draghi making some comments. The meeting went off without issue, and no monetary policy changes were made as a result. Draghi’s comments were nothing out of the oridnary, but they were enough to lift the euro currency for the day.
As we look ahead to the last day of the week, the employment report for November will catch the undivided attention of the marketplace. If it is indeed stronger than market expectations, the belief that QE will be tapered before the end of the year will likely be strengthened even further.