Gold & Silver Prices Pull Back On Jobs Data

The renewed strength of U.S. currency as well as a better-than-expected jobs report allowed gold and silver prices to fall Friday morning. Gold fell below the $1400 per ounce mark again, while silver unexpectedly dropped below the $22 per ounce level.

As of 2pm EST the gold spot price was $1373, down $32.10 for the day. Silver suffered a $0.79 drop and landed at $21.80 per ounce. Although multiple precious metal market analysts have repeatedly mentioned silver as the precious metal with the most potential right now, the last year has not been pretty for the “poor man’s gold.” Gold is down approximately 12 percent since June 7, 2012, while silver have fallen by more than 23 percent during that same length of time.

“Silver has potential for multiple reasons,” commented analyst Drew Gordon. “Not only is silver being increasingly used in the manufacture of automobiles and appliances, but it has great value in the field of medicine. Of course, once you use silver for an industrial purpose it is gone forever, so seeing [silver prices at] $22 or below is very tempting for buyers,” Gordon added.

Gordon also mentioned that while investors have largely lost interest in gold and silver derivatives like ETFs and futures contracts, the demand for privately-held, physical gold and silver is still quite high. “Looking at reports from the U.S. Mint and other manufacturers of bullion and coinage we can clearly see that people are buying gold.”

Why, then, have gold and silver spot prices continued to fall? “The large-volume buyers like banks and brokerage houses are selling their paper gold or just sitting tight. Household buyers are scrambling to get their hands on as much physical gold and silver as they can, and they aren’t as concerned with the spot price as they are with having hard assets to fall back on if things get really ugly,” Gordon said.

Visit the Daily Update page again on Monday for next week’s outlook on the precious metals markets.

GS social media share img

Get Your Complementary Award Winning Guides Below

 Publish Real Money Magazine

 Publish Gold Investment Magazine

 Publish IRA 401K Kit Magazine

 Real Money Magazine