Gold and silver continued their upward trend and moderately inclined yesterday despite the drop in commodities. The Euro sharply depreciated against the USD. Today, the American non-farm employment report will be out and some expect it will show a sharp gain in employment; the Canadian employment report will also be released today.
Gold inclined on Thursday by 0.46% to $1,620.1; silver also rose by 0.68% to reach $29.30. During January gold increased by 3.4% and silver price by 4.9%.
U.S. Initial Claims Fell Last Week
According to the recent U.S. jobless claims weekly report there was a decrease in initial claims of 15,000 for the week ending on December 31st to reach 372,000 claims (seasonally adjusted data); the number of insured unemployment reached 3.595 million, a decrease of 22,000 compared with the previous week’s figure; furthermore, the four week average fell by 1,000 to 3.601 million. This news may affect yesterday’s trading and may have helped with the appreciation of the USD.
Gold and Silver Outlook
Gold and silver continued to trade up yesterday, but might change direction and decline today if the U.S. employment report will show a substantial increase in the U.S. employment; furthermore, I speculate that if the “risk currencies” including the Australian dollar and Euro will continue to depreciate against the US dollar, it will eventually catch up with gold and silver and pull them down. On the other hand, if the U.S. stock markets will continue to trade up, it may help keep gold and silver up.
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