Gold & Silver Fall After Weak Jobs Report, More Pressure Could Be Coming On Metals Today

The September jobs report was just released, and not only are gold & silver falling, but the fall could continue. Here’s why…

The BLS Jobs Report, formally known as the Employment Situation Report, was just released for September, 2019.

It’s breaking news:

Thank goodness the numbers are no longer phony as Candidate Trump called out!

Prior to the release, here were the consensus estimates from Econoday:

The actual numbers, however, even taken at face value, aren’t even really that strong.

Number of jobs created in the month of September, 2019: 136,000

The unemployment rate declined to 3.5%

Average hourly earnings (year over year) rose 2.9%

Labor force participation is unchanged at 63.2%

Directly from the BLS Report:

The unemployment rate declined to 3.5 percent in September, and total nonfarm
payroll employment rose by 136,000, the U.S. Bureau of Labor Statistics reported
today. Employment in health care and in professional and business services continued
to trend up.

In September, average hourly earnings for all employees on private nonfarm payrolls,
at $28.09, were little changed (-1 cent), after rising by 11 cents in August. Over the
past 12 months, average hourly earnings have increased by 2.9 percent. In September, average
hourly earnings of private-sector production and nonsupervisory employees rose by 4 cents
to $23.65. (See tables B-3 and B-8.)

The labor force participation rate held at 63.2 percent in September. The employment-
population ratio, at 61.0 percent, was little changed over the month but was up by
0.6 percentage point over the year. (See table A-1.)

Here are gold & silver leading up to the report, and the minute the report hit the tape:

Those are some pretty interesting swings, beginning before the actual release of the report at 8:30 a.m. EST.

This should end up being a very interesting day for gold & silver.

How so?

Well, at 2:00 p.m. EST Fed Head Powell will be giving a speech and take questions and answers in Washington, DC, and his words have the ability to move the markets.

Additionally, China is still on Golden Week with markets closed until next Tuesday.

Therefore, we could really see some swings today in gold, silver, the dollar and the stock market.

Here’s some MSM coverage on the Jobs Report, from Bloomberg:

The unexpectedly shaky report boosts the case for the Federal Reserve to make a third-straight interest-rate cut later this month. The downbeat reading also adds to signs President Donald Trump’s trade policy and weakness abroad pose an increasing threat to growth in the world’s largest economy, though the unemployment rate decline will offer him a chance to boast about economic gains.

The jobs report caps a week of U.S. economic data that whipsawed stocks and sent already-low Treasury yields tumbling, led by a key manufacturing gauge that sank deeper into contraction with the worst reading in a decade. A slowdown also threatens Trump’s re-election prospects next year, with the president frequently staking his message on a strong economy.

The question I have is the same one I’ve been asking for over one week now.

Is the cartel going to let some old-fashioned price smashin’ go to waste?

Because they have plenty of cover to smash gold & silver prices.

Fundamentally, a jobs report like this one is “good for gold”.

Because it makes the case for Fed monetary stimulus.

But I don’t think it’ll be good for gold & silver today.

The next rally in gold & silver is coming soon.

I think the rally could even start next week.

Once Shanghai re-opens from holiday.

Any weakness here is truly a gift.

Prices won’t stay low for long.

Pullback’s nearing its end.

The dollar is strong.

An opportunity?

It its, indeed.

For now.


Stack accordingly…

– Half Dollar


About the Author

U.S. Army Iraq War Combat Veteran Paul “Half Dollar” Eberhart has an AS in Information Systems and Security from Western Technical College and a BA in Spanish from The University of North Carolina at Chapel Hill. Paul dived into gold & silver in 2009 as a natural progression from the prepper community. He is self-studied in the field of economics, an active amateur trader, and a Silver Bug at heart.

Paul’s free book Gold & Silver 2.0: Tales from the Crypto can be found in the usual places like Amazon, Apple iBooks & Google Play, or online at Paul’s Twitter is @Paul_Eberhart.