Gold Price Breaks Below ‘Key’ $1233 Level as US Jobless Rate Hits 2007 Low, Political Uncertainty Lessens
Bullion.Directory precious metals analysis 05 May, 2017
By Adrian Ash
Head of Research at Bullion Vault
US payrolls rose by 211,000 in April on the Bureau of Labor Statistics’ first estimate, beating Wall Street forecasts of 190,000 and nudging the unemployment rate down to 4.4%.
Matching the lows of spring 2007 – just before the global financial crisis – that put the US jobless rate at its lowest level since spring 2001, just as the Tech Stock Crash preceded the United States’ prior economic recession.
Bets on the US Federal Reserve hiking its key interest rate at the June meeting jumped to show an 83% likelihood from 68% only a week ago, while the Dollar spiked on the news, before falling hard to set new 6-month lows against the Euro.
The Dollar also retreated against the Japanese Yen, breaking the tight relationship between USD/JPY and gold prices in Dollar terms building since the start of 2016.
With French voters set to elect centrist Emmanuel Macron as President on Sunday, gold priced in Euros fell back to €1120 per ounce – the lowest since start February – as the Yen gold price struggled above 7-week lows.
Silver fell faster, reversing an overnight rally against the falling Dollar to erase almost the last of 2017’s previous 17% gains at $16.33 just after the US non-farm jobs data.
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