Gold & Silver Pop On Terrible August Jobs Report, Govt Creates At Least 25,000 Of The 130,000 Jobs

Interestingly, the mining sector lost jobs. Here’s more…


Mike & Half Dollar will be live-streaming today at 12:00 p.m. EST (link to live-stream) over on our YouTube channel.

We hope to see you then!

Listen to Half Dollar say last week during our live-stream that silver would overshoot $18.50 to the upside, and then pull-back to consolidate at $18.50 (conveniently started at the point in the stream):

That turned out to be a good call!


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

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

Here are the actual numbers as reported by the BLS:

Total nonfarm payroll employment rose by 130,000 in August, and the unemployment
rate was unchanged at 3.7 percent, the U.S. Bureau of Labor Statistics reported
today. Employment in federal government rose, largely reflecting the hiring of
temporary workers for the 2020 Census. Notable job gains also occurred in health
care and financial activities, while mining lost jobs.

Number of jobs created in the month of August, 2019: 130,000

The unemployment rate was unchanged at: 3.7%

Average hourly earnings (year over year) rose 3.2%

Labor force participation rate increased to 63.2%

Interestingly, yesterday, well, this:

Is President Trump the Fall Guy?

Here are gold & silvers’ price action the minute the data “hit the tape”:

Generally speaking, gold & silver are “sold” into the report, but there has been so much pressure applied to the metals over the last couple of days, especially since yesterday, that it seems further downside pressure may prove tricky for the cartel.

I for one and not concerned about the metals action right now, especially silver’s, but people who are in the fiat paper casino trading in and out of the swings, sending dollars the way of the banks to perpetuate the system might find they need to take a bottle of Tums to work today.

More on the August jobs report, from Bloomberg:

U.S. companies’ hiring stumbled in August, likely cementing expectations for a second straight Federal Reserve interest-rate cut as trade uncertainty and softer global growth weigh on the outlook.

Private payrolls rose 96,000, a three-month low, after a downwardly revised 131,000 advance the prior month, according to a Labor Department report Friday that trailed the median estimate of economists for a 150,000 gain. Total nonfarm payrolls climbed a below-forecast 130,000, which was boosted by 25,000 temporary government workers to prepare for the 2020 Census count.

What does this mean?

Well, it means a couple of things.

First, it means the Fed has additional “cover” to cut rates since the report was weak.

Second, it means if the Fed has some cover to cut rates, then this report, theoretically, is “good for gold” & silver.

So the question I’d like to ask is, will the “knee-jerk” reaction be the actual direction of the move today?

I would say yes, but that’s a tough one because the markets will likely be prepped when Fed Head Powell gives his “economic outlook” in Zurich today.

Egon von Greyerz lives in Zurich, and if he could sneak in for us to ask Powell one question, what would that question be?

Listen to Egon’s answer, conveniently started at the timestamp when Egon is asked:

I think a lot of people share that very same sentiment.

We’re still not even at the opening bell for Friday, and there’s a full day of trading to go.

In the grand scheme of things, nothing has changed in the fundamental picture.

I’ll be looking for market prep work beginning sometime around high noon.

At which time, we will be live-streaming analysis of the “markets”.

Over on our YouTube Channel (direct link to stream here)

We hope you come join us for some great analysis.

We also hope you be part of the conversation.

These are exciting times for gold & silver.

Silver is especially volatile right now.

Gold has been holding steady.

Powell is coming up next.

Jobs just hit the tape.

Much to follow.




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.