Gold & Silver Rise After Release Of The Spectacular Employment Situation Report For April, 2019

President Trump & Fed Head Powell, we have a problem, and it’s not about gold or silver but about Trump’s demands and current Fed policy…

The BLS just released its Employment Situation Report for April, 2019.

Prior to the release of the report, here were the range of estimates:

Here are the actual numbers as reported by the BLS:

Number of jobs created in the month of April, 2019: 263,000

Unemployment rate fell to: 3.6%

Average hourly earnings (year over year) rise: 3.2%

Labor force participation rate declined to: 62.8%

Here’s a look at gold & silver’s obligatory slam upon release of the report:

There is always heavy volume the moment the report “hits the tape”.

More on the jobs report, from Bloomberg (bold added for emphasis):

U.S. hiring topped forecasts in April as the jobless rate dipped to a fresh 49-year low and wage gains were slightly cooler than projected, suggesting the still-healthy labor market can continue to support growth without fueling inflation.

Payrolls climbed by 263,000 after a downwardly revised 189,000 advance the prior month, according to a Labor Department report Friday that exceeded all estimates in a Bloomberg’s survey. The jobless rate unexpectedly fell to 3.6 percent while average hourly earnings growth was unchanged at 3.2 percent, below projections.

*****

The surprising robustness follows months of broad labor market strength. While the expansion is poised to become the nation’s longest on record at midyear, economists expect a deceleration this year even after a strong first quarter.

Oh yeah!

Booming economy!

Stand by for Trump Tweets!

To that note, everything is more than awesome as reflected in this most recent Bureau of Lies Labor Statistics Employment Situation Report, and we will soon hear just how awesome it is with the customary “JOBS! JOBS! JOBS!” Tweet.

But there’s a problem: How in the world can President Trump call for an immediate slashing of interest rates and a return to money printing with such a booming economy?

He can’t.

They are mutually exclusive.

Either the economy is booming and monetary policy is in need of tightening, or the economy is in crisis and we need “easy money” policy.

President Trump say the economy is booming, yet he wants monetary policy as if we were in crisis.

It just goes to show what a corrupt financial world we live in where we’re told we have the greatest economy, ever, yet we need to react to a financial crisis.

As far as the Fed goes, how in the heck can the Fed justify its “patience” with such a booming economy in general, and a super-duper labor market specifically?

They can’t.

Unfortunately, both the Trump and the Fed apologists will get all the airwaves to spin Trump’s demands and the Fed’s patience with their nonsense, and the apologists will simply ignore that which cannot be spun.

The bottom line, in my opinion, is that both the President and the Fed are lying directly to our faces, and they are certainly not talking about Main Street or the Average Joe when they talk about the economy, for they are only interested in the corrupt, crony-capitalist, buddy-buddy and financialized trickery that fills their and their selected friends and families pockets with mad cash.

Some charts on today’s spectacular Jobs Report, from Zero Hedge:

Overall, this jobs report is going to be bragged about as super-duper awesome.

Gold & silver look like they want to run 20-some minutes after the release of the report:

Of course, with the daily beat-downs and the extra beat-down from yesterday, there is a lot of work for gold & silver to even catch up to $1300 and $15.

SEE: Gold & Silver Brutally Beaten To Within One Inch Of Their Lives On Thursday

That said, silver traded with a $14.5X handle yesterday, and my downside target all along has been $14.50, so I do think the bottom is in.

Where it looks like I’ll be wrong is my call of an explosive move this week, and even if we get one on this last trading day of the week, we’re starting from such a low price, especially with silver, that any price explosion will largely go un-noticed as all we’re really doing is regaining lost ground.

Furthermore, since the slam into the data release is customary, the knee-jerk would be considered the spike off of the initial slam.

That is not necessarily a good thing because often times the knee-jerk reaction isn’t the ultimate direction of the move.

This time, however, gold & silver have been so beat down, that I really do think the downside is limited.

As such, if this knee jerk is not the direction, I’d be looking for a fade rather than a slam.

There is only so much slamming that can be done.

And it has been done.

Already.

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 PaulEberhart.com. Paul’s Twitter is @Paul_Eberhart.

***