Precious metal movement
Precious metals including gold, silver, and platinum witnessed an up-day in their spot markets on Monday. Gold (GLD) was up 0.5% and closed at $1,339.6 per ounce. Silver was up 0.88% and ended at $16.7 an ounce. Platinum rose 0.13% to close at $990.1 an ounce. Palladium, however, dropped about 1.6% to end the day at $1,033. Palladium is regarded as an industrial asset, so the overall market slump likely took it lower. However, the precious metal performance over the past five trading days has fallen 0.51%, 2.5%, 1.6%, and 4.5%, respectively.
The metals likely witnessed an up-day on Monday due to the slump of the equities on Friday, February 2, after the strong US economic numbers and the increased probability of an interest rate rise.
The average hourly earnings in the US, which is a measurement of the change in the price businesses pay for labor excluding the farming industry was at 0.3%, a little higher than the expected 0.2%. Also, the non-farm employment change, which measures the difference in the number of employed people during the previous month excluding the farming industry, was at 200,000, much higher than the expected 181,000. The unemployment change was in line with market expectations at 4.1%.
Impact on miners
The optimistic numbers likely boosted inflation expectations, which hurt equities. The relation of inflation and interest rate to gold is discussed in the next article.
Some of the mining stocks that fell on Monday despite the revival in gold and silver were Randgold Resources (GOLD), Barrick Gold (ABX), Agnico-Eagle Mines (AEM), and Wheaton Precious Metals (SLW). These stocks dropped 6.7%, 0.8%, 2.2%, and 0.28%, respectively.