How New US Economic Data Played on Gold



Employment figures

Gold and other precious metals are looking for direction from the Market. The most important element in the determination of precious metals prices is the interest rate hike by the Federal Reserve.

The major questions surrounding the rate-hike scenario are its timing and the performance of the US economy.

Economic data coming from the United States remain a performance gauge. The information on US economic performance released on April 1, 2016, gave some direction to gold. Average US hourly earnings, which determine changes in the prices businesses pay for labor, were 0.3%, higher than the forecast 0.2%.

Also, non-farm employment figures were higher than expected. The figure was 215,000 greater than the forecast 206,000.

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Miners and ETFs performance

Precious metals saw a down day on April 1, 2016. The fall in precious metals was led by the marginal rise in the US dollar, depicted above by the US Dollar Index (or DXY). DXY rose 0.03%. The economic data that came out on April 1 had a substantial impact on the equity and commodities markets.

The rise in the indicators mentioned above helped the economy and resulted in weakness for precious metals. Gold, silver, platinum, and palladium fell 0.98%, 2.7%, 2.4%, and 0.55%, respectively, on the day. The falls in these metals weighed on ETFs such as the SPDR Gold Shares ETF (GLD) and the iShares Silver Trust ETF (SLV). GLD and SLV fell 0.6% and 2.3%, respectively.

Mining shares saw a mixed performance, but most miners saw an up day. Companies such as Alamos Gold (AGI), Alacer Gold (ASR), and Yamana Gold (AUY) rose 6.1%, 5.1%, and 2%, respectively. These three companies make up 5.7% of the VanEck Vectors Gold Miners ETF (GDX).


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