Unemployment Report Weighs on Gold and Silver
By Eric McWhinnie | October 6, 2012 7:01 AM EST
On Friday, gold (NYSEARCA:GLD) futures for December delivery decreased $15.70 to settle at $1,780.80 per ounce. Silver (NYSEARCA:SLV) futures fell 53 cents to close at $34.57. Gold finished higher on the week, while silver ended unchanged.
Both precious metals traded lower on Friday after the unemployment rate in the United States came in better than expected. The Labor Department reported that the rate dropped to 7.8 percent, previously at 8.1 percent. It was the first time below 8 percent in 44 months, and below estimates of 8.2 percent.
However, investors should heed warning that the U-6 unemployment rate, which includes underemployed and discouraged workers, remained unchanged at a whopping 14.7 percent. Furthermore, the economy added only 114,000 new jobs, far below the level of a healthy economy.
By the end of the trading day, the SPDR Gold Trust (NYSEARCA:GLD) finished 0.57 percent lower, while the iShares Silver Trust (NYSEARCA:SLV) fell 1.41 percent. Gold miners (NYSEARCA:GDX) such as Barrick Gold (NYSE:ABX) and Newmont Mining (NYSE:NEM) edged 0.45 percent and 0.69 percent lower, respectively. Silver names such as Hecla Mining (NYSE:HL) and First Majestic Silver (NYSE:AG) both declined more than 1 percent.
Primero Mining (NYSE:PPP) shares surged 36 percent higher on Friday. The junior miner announced that it received a positive ruling from Mexican tax authorities in regards to how it reports silver revenues. The decision allows Primero to record silver revenue and taxes from its San Dimas gold mine at the realized silver price, as opposed to the spot price. This will lead to large savings as the company has a deal to sell silver to Silver Wheaton (NYSE:SLW) until August 2014 at a price for as little as about $4 per ounce.
Investor Insight: Gold: A Put Against the Idiocy of the Political Cycle
If you would like to receive professional analysis on miners and other precious metal investments, we invite you to try our premium service free for 14 days.
Disclosure: Long EXK, AG, HL, PHYS
Most Popular Slideshows
- Prince Harry & Camilla Thurlow Getting Serious, St. Tropez Holiday Before The Prince’s 30th Birthday [PHOTOS]
- Kate Middleton’s Mom Accused Of Being A Social Climber, Prince George Not Seen By Relatives
- Angelina Jolie & Brad Pitt Heads to Malta For New Movie After A Whirlwind French Wedding [PHOTOS]
- Top 5 Richest Tennis Athletes
Join the Conversation
- Worldwide Appetite for Gold Slumps 16% in 2Q 2014 – WGC
- Gold in China: 127-Tonne Gold Reserves Tapped in Xinjiang
- Global Markets Overview – July 15, 2014
- Honduran Gold Mine Caves in; 8 Rescued, 3 Remain Trapped (PHOTOS)
- Chinese Govt Tightens Control on Gold to Curb Imports, Could Drop 400T from 2013 – Report
- Apple iWatch is iPhone 6 Accessory on Sept 19 Release Date: 6 Confirmed Specs & Features
- Sept 19 iPhone 6 Release Date Firms Up as iWatch Rollout Delayed to Jan 2015 – Reports
- Canada Vs Russia War Erupts Via Twitter on Russia-Not Russia Maps
- James Foley Torture Involves CIA Waterboarding Technique
- Malaysia Airlines to Axe 4,000 Employees, Including CEO; Suspends Trading of Shares
- West Looks Divided in Tackling Russian Invasion In Ukraine
- Amazon Threatened by Google’s Partnership with Barnes and Noble