Unemployment Report, ECB News Keeps Gold, Silver Buoyant

by Andrew Burger | December 2, 2011 11:33 am

The Labor Department’s unexpectedly strong employment report for November sent stock markets, gold and silver up for a third consecutive morning. The short-term reversal remains on tenuous ground, however, as euro zone leaders have yet to agree on structural reforms that market participants see as strong and lasting.

Spot gold was up more than 0.15%, with a bid price of $1,748.20 and an ask price of $1,749.20 at 10 a.m., having traded as high as $1,764.40 and as low as $1,744.20. The London morning reference price fixing came in at $1,751, according to Kitco market data[1].

Spot silver was up more than 1.7%, bid at $33.30 with an ask price of $33.40. The morning high at time of writing was $33.81, and the low was $32.90. Monday’s reference price was set at $33.15 in the London a.m.

The U.S. unemployment rate fell to 8.6%, its lowest level in two-and-a-half years[2] in November. Employers added 120,000 jobs in November, while employment was revised upwards for September and October as well. Hiring picked up, but part of the decline in the headline jobless rate was due to more workers giving up on looking for work.

Meeting in Brussels, euro zone finance ministers agreed to work up a plan[3] that would add as much as 200 billion euros (~$270 billion) to the funds the European Central Bank can use to stem the rise in eurozone government bond yields.

Gold and silver trusts were moving higher.

The junior gold and silver mining ETFs were higher, but the Market Vectors Gold Miners ETF was lower.

Gold mining shares were moving lower.

Agnico-Eagle Mines (NYSE:AEM[10]) was showing losses of some 1.5%.

Silver mining shares were a mixed bag.

As of this writing, Andrew Burger did not own any of these stocks.

  1. Kitco market data: http://www.kitco.com/market/
  2. lowest level in two-and-a-half years: http://www.nytimes.com/2011/12/03/business/economy/us-adds-120000-jobs-unemployment-drops-to-8-6.html
  3. work up a plan: http://www.businessweek.com/news/2011-12-02/euro-central-banks-seen-providing-up-to-270-billion-via-imf.html
  4. GLD: http://studio-5.financialcontent.com/investplace/quote?Symbol=GLD
  5. IAU: http://studio-5.financialcontent.com/investplace/quote?Symbol=IAU
  6. SLV: http://studio-5.financialcontent.com/investplace/quote?Symbol=SLV
  7. GDX: http://studio-5.financialcontent.com/investplace/quote?Symbol=GDX
  8. GDXJ: http://studio-5.financialcontent.com/investplace/quote?Symbol=GDXJ
  9. SIL: http://studio-5.financialcontent.com/investplace/quote?Symbol=SIL
  10. AEM: http://studio-5.financialcontent.com/investplace/quote?Symbol=AEM
  11. ABX: http://studio-5.financialcontent.com/investplace/quote?Symbol=ABX
  12. GG: http://studio-5.financialcontent.com/investplace/quote?Symbol=GG
  13. NEM: http://studio-5.financialcontent.com/investplace/quote?Symbol=NEM
  14. NG: http://studio-5.financialcontent.com/investplace/quote?Symbol=NG
  15. CDE: http://studio-5.financialcontent.com/investplace/quote?Symbol=CDE
  16. HL: http://studio-5.financialcontent.com/investplace/quote?Symbol=HL
  17. PAAS: http://studio-5.financialcontent.com/investplace/quote?Symbol=PAAS
  18. SLW: http://studio-5.financialcontent.com/investplace/quote?Symbol=SLW
  19. SSRI: http://studio-5.financialcontent.com/investplace/quote?Symbol=SSRI

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