News that the U.S. economy generated fewer jobs than expected in September boosted investor confidence that the Federal Reserve would postpone any tapering of its monthly bond-buying, sending gold sharply higher on Tuesday.
The Labor Department’s jobs report for last month was itself delayed by the recently ended government shutdown. Today’s report showed that the economy added just 148,000 new jobs in September, well below the 185,000 jobs that economists had predicted.
The Federal Reserve has indicated that it does not plan to reduce economic stimulus until there is evidence of sustained employment growth.
Gold futures for December delivery climbed 2% to $1,342.60 per ounce on Tuesday, according to CME Group. Gold traded as high as $1,344.70 and as low as $1,309.50. Bullion closed in London at $1,342, according to BullionVault.
Silver futures for December moved up 2.3% to $22.79 per ounce. Tuesday’s high for silver was $22.83, while the low was $21.99.
Metal funds gained in Tuesday trading.
- The SPDR Gold Shares (GLD) rose 1.9%.
- The iShares Gold Trust (IAU) also added 1.9%.
- The iShares Silver Trust (SLV) increased 2.2%.
Mining ETFs surged during the day.
- The Market Vectors Gold Miners ETF (GDX) climbed 4.4%.
- The Market Vectors Junior Gold Miners ETF (GDXJ) jumped 6.3%.
- The Global X Silver Miners ETF (SIL) improved 4.3%.
Gold stocks advanced on Tuesday.
- Agnico-Eagle Mines (AEM) gained 5%.
- Barrick Gold (ABX) rose 4.9%.
- Eldorado Gold (EGO) added 3.8%.
- Goldcorp (GG) increased 5%.
- Kinross Gold (KGC) moved up 3.1%.
- Newmont Mining (NEM) improved 3.5%.
- NovaGold Resources (NG) grew 2.2%.
- Yamana Gold (AUY) moved higher 4.7%.
Silver mining shares rose during the day.
- Coeur d’Alene Mines (CDE) added 2.8%.
- Hecla Mining (HL) gained 4.6%.
- Pan American Silver (PAAS) moved up 2.6%.
- Silver Wheaton (SLW) added 3.6%.
- Silver Standard Resources (SSRI) increased 2.2%.
As of this writing, Christopher Freeburn did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault contributed to this report.