Gold Jumps Back Near $1,320 After Jobs, CPI Data - Gainesville Coins News
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Gold Jumps Back Near $1,320 After Jobs, CPI Data

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Gold Jumps Back Near $1,320 After Jobs, CPI Data

Spot gold opened near $1,320/oz this morning following a pair of reports from the Department of Labor.

Gold traded $6 higher (+0.45%) to $1,318 per ounce by about 10 am EST.

The silver price outpaced gold on dollar weakness, rallying 1.1% (+19¢) to $16.65/oz.

Both of the Platinum Group Metals advanced, as well: Palladium rose 1.45% (+$14) to $985/oz and platinum was up $6 (+0.65%) to nearly $920/oz.

This followed yesterday's mixed performance where the other three precious metals posted gains while gold futures slipped 0.5%.

Labor Department Data Dominates News

Today's market movement was largely focused on weekly jobless numbers and the latest inflation reading.

First-time jobless claims came in at 209,000 last week. This remains the lowest in roughly 48 years. The report was slightly better than forecast.

The U.S. labor market continues to operate "at or near full employment," with the national jobless rate at 3.9%.

However, the number of current job openings (especially in skilled labor positions) is still at an all-time high—so there may be more room for unemployment to improve further.

In another report from the Department of Labor, the consumer price index (CPI) fell short of expectations.

CPI was up 2.5% in April, a 0.2% gain month-on-month. Core inflation rose a paltry 0.1%.

The dollar fell but equities moved higher after the CPI data was released.

Gold futures are eyeing a fresh two-week high. At the same time, the gold-silver ratio has steadily dropped as the argent metal is outperforming its more popular counterpart of late.

A higher closing price would snap an extended losing streak for gold.

U.S. Stock Market Continues to Churn Higher

Stocks in the U.S. closed higher on Wednesday.

The Dow Jones rose for the fifth consecutive session, its best string of gains since February. The S&P 500 and Nasdaq advanced 1% each.

By any measure, the markets were aided by a 3% rally in crude prices yesterday.

However, oil halted in early trading: WTI held at $71/bbl and Brent crude slipped just below $77/bbl.

Wall St continued to climb Thursday following the CPI and jobless reports while the USD lost ground.

Source: MarketWatch

The DXY dollar index sank 0.45% to 92.6.

The euro jumped 0.75% to $1.194 in response, yet the pound was flat. The yen was up 0.25% against the dollar to about ¥109.5.

Meanwhile, the inflation rate for the Venezuelan bolivar is now a staggering 21,000% year-on-year.

Bonds vacillated from negative to positive. The benchmark Treasury note yield reached as high as 3.02% yesterday before easing back. 10-year yields fell by four basis points this morning to 2.97%.

On the other side of the Atlantic, the Bank of England left its key interest rate unchanged at 0.5% during today's meeting.

The FTSE 100 in London and DAX in Germany held steady while shares fell elsewhere in Europe.

Stocks ended the overnight session modestly higher in Japan and China.


The opinions and forecasts herein are provided solely for informational purposes, and should not be used or construed as an offer, solicitation, or recommendation to buy or sell any product.

About the Author

Everett Millman

Everett Millman

Analyst, Commodities and Finance
Managing Editor

Everett has been the head content writer and market analyst at Gainesville Coins since 2013. He has a background in History and is deeply interested in how gold and silver have historically fit into the financial system.

In addition to blogging, Everett's work has been featured in CoinWeek, Advisor Perspectives, Wealth Management, Activist Post, and has been referenced by the Washington Post.

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