Gold and Silver Prices Tumble
Gold prices fell sharply on Friday as the U.S. dollar strengthened following the release of better than expected June nonfarm payrolls data. Silver prices also tumbled in trading on Friday.
On Friday, the Labor Department released its all-important nonfarm payrolls data. The figures released by the Labor Department showed that the U.S. economy added 195,000 jobs in June, which was above the consensus forecast of 165,000 job additions. The strong nonfarm payrolls data has raised the prospects of an early end to the Federal Reserve’s bond purchase program, which is a negative for gold.
Frank McGhee, Head Precious Metals Trader at Integrated Brokerage Services in Chicago, said that the job numbers simply reinforce the market’s forward-looking position on where gold is likely to be down the road. McGhee said that the market is looking 6 to 8 months out, pricing gold in a rising interest rates environment.
Spot gold prices fell 3% to $1,215 an ounce on Friday. Earlier in the day, spot gold prices touched an intra-day low of $1,207.50 an ounce. Gold futures for delivery in August fell $39.20 to settle at $1,212.70 an ounce. In late trading, the SPDR Gold Trust (ETF) (NYSE: GLD) was down 2.16% to $118.13.
Silver prices also fell sharply on Friday. At last check, spot silver was down 3.7% to $18.81 an ounce.
Platinum also edged lower on Friday. At last check, platinum was down 1.2% to $1,323 an ounce. Palladium, meanwhile, edged higher, gaining 0.7% to $679 an ounce.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
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