Gold nearly breached $1350 at the release of the jobs report, and the dollar plummeted. Here’s an update…
Editor’s Note: With gold & silver on the move, it is important to understand (read about it here) why silver is set to move even faster.
You can also hear it explained in plain English as we covered this out-of-the-gate in this week’s show (and I’ve conveniently started the video at the exact time stamp regarding silver’s explosiveness):
The Bureau of Labor Statistics just released its Employment Situation Report for June, 2019.
Here’s a look at the consensus estimates prior to the release:
Here are the actual numbers as reported by the BLS:
Number of jobs created in the month of May, 2019: 75,000
Unemployment is unchanged at: 3.6%
Average hourly earnings (year over year) rise: 3.1%
Labor force participation rate is unchanged at: 62.8%
Here’s a look at gold & silver’s pop at the exact moment of the release of the report:
That was 7,856 contracts of gold in the minute between 8:30 and 8:31 a.m. EST, and notice silver punched through $15 on the spike!
Here’s another look, this time with the dollar index included:
The mainstream logic will be that this report is dollar negative because it gives the Fed additional cover needed to preemptively take
unconventional, emergency conventional, preventative measures.
Here’s some typical MSM establishment coverage, via Bloomberg:
Payrolls rose 75,000 after a downwardly revised 224,000 advance the prior month, according to a Labor Department report Friday that missed all estimates in Bloomberg’s survey calling for 175,000. The jobless rate held at a 49-year low of 3.6% while average hourly earnings climbed 3.1% from a year earlier, less than projected.
The surprisingly sour data signal the labor market, a pillar of strength for an economy headed for a record expansion, was facing new pressures even before Trump threatened tariffs on Mexican goods in addition to proposed higher levies on Chinese imports. Retail sales, factory output and home purchases have shown the economy struggling this quarter after better-than- expected growth in the first three months of the year.
And some charts from Zero Hedge:
Notice the two weak months (Feb was even worse) so far in 2019.
Here’s a chart showing just how huge of a “miss” the headline number was:
Don’t they know it is common practice all over the Federal Government to just change numbers at will, and, more importantly, by order?
Wage growth will be seen as slowing:
Even though the gains are, statistically speaking, far above the Fed’s stupid 2.0% “symmetrical” inflation “objective”.
A look at the “historic” unemployment rate:
The reversal will be nice and brutal because the reversal will really help with the shock-n-awe factor as they bring on max pain to America the the form of economic misery and financial ruin.
Twenty minutes in and gold especially is being walked back down:
Will gold close above $1350 and silver above $15?
If so, that would be some sweet momentum.
At a time famous for “summer doldrums”.
Lots of day left in these “markets”.
No room for cartel errors.
Plenty of room to run.
To the upside.
– 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.