Gold & Silver Knee-Jerk Higher As US Adds Just 49,000 Jobs in January

Gold & silver knee-jerk higher, after being walked-down overnight, of course…

(by Half Dollar) Prior to the release of today’s BLS Employment Situation Report, commonly called the “Jobs Report”, the consensus was all over the place.

For example, from Econoday:

The consensus range was anywhere from a not insignificant drop to a gain in the hundreds of thousands.

That said, the Bureau of Labor Statistics has just released the Employment Situation Report for January, 2021.

If you believe the numbers, according to the Bureau of Labor Statistics, in the month of January, 2021:

  • Total employment increased by: 49,000
  • Unemployment rate fell to: 6.3%
  • Average hourly earnings rose by: $0.06

Here’s the first paragraph of today’s report (bold added for emphasis):

The unemployment rate fell by 0.4 percentage point to 6.3 percent in January, while nonfarm payroll employment changed little (+49,000), the U.S. Bureau of Labor Statistics reported today. The labor market continued to reflect the impact of the coronavirus (COVID-19) pandemic and efforts to contain it. In January, notable job gains in professional and business ervices and in both public and private education were offset by losses in leisure and hospitality, in retail trade, in health care, and in transportation and warehousing.

Gold & silver knee-jerked higher when the report hit the tape:

After being walked down overnight, however.

Of course, this doesn’t give me a good feeling inside because knee-jerks are often not the actual direction of the eventual move, and if this is the last bit of time we’re spending in the $20s, I also don’t think the Cartel is done with their smashing.

In other words, the Cartel is not angry, the Cartel is mad, and wouldn’t they just love to see the paper price silver in the teens just one last time, regardless of the price one actually has to pay to get real, physical silver in-hand?

However, there is good news when it comes to silver’s bullish fundamentals, and this is arguably even more important than the jobs report, and it may just negate the Cartel’s one last royal flushing of silver:

The next round of Federal fiscal “stimulus”, which would be Biden’s first round of stimulus, appears to be coming sooner rather than later.

Of course, the vote took place at 5:30 a.m. after a supposed Congressional all-nighter, so I wouldn’t expect much progress today because, well, the last time I checked, sleep is still a thing.

So look for all of the Fed and system apologists, armchair quarterbacks, enablers, experts, gurus and pundits to come of the woodwork today to fill in the void for the Ministry of Propaganda.