Gold Jumps on Weak Jobs Report

by Christopher Freeburn | October 22, 2013 4:21 pm

Gold Silver GLD IAU SLV[1]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[2]. 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[3].

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.

Mining ETFs surged during the day.

Gold stocks advanced on Tuesday.

Silver mining shares rose during the day.

As of this writing, Christopher Freeburn did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault[23] contributed to this report.

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