Apmex Gold & Silver Market Report -- 9/2/2011

The following is a commentary from APMEX

APMEX Morning Gold & Silver Market Report -- 9/2/2011
(Peter LaTona), APMEX - Commentaries

August Jobs Report is a Big Fat Goose Egg

Gold and silver prices have risen overnight, in anticipation of another lackluster jobs report. The U.S. stock market futures are falling on the same expectations. The report just came out at 7:30 AM (CT) and once again the number falls below expectations. Most projections were for between 68,000 -71,000 new jobs created, but there were no gains and unemployment holds at 9.1%. Gold and silver prices moved further up on the news.

The European Union (EU) bailout of Greece has only become more contentious. Once thought to be a done-deal, yesterday, talks broke down between international inspectors and Greek officials on whether Greece has met the requirements to receive even more bailout money. Their disagreements are centered around why and by how much the Greek deficit programs have fallen behind. This break down in discussions had not been planned and serves to further rattle markets both in the U.S. and abroad.

Switzerland has been very concerned about the rapidly rising value of the Swiss franc. The Swiss franc is gaining popularity as other world currencies losing theirs. One of these reasons that the Swiss franc is gaining safe haven appeal is that as a percentage of their GDP, the Swiss central bank owns more gold than any other country in the world. The Swiss central bank may very well begin buying Euros to curb the rise in the Swiss franc. This measure is one that they hoped to avoid, but they may need to intervene. This week, the Swiss franc is heading for its largest weekly gain ever against the Euro.

A federal U.S. agency is preparing to sue more than a dozen big banks for their role in the mortgage meltdown. The charges will revolve around accusations that these big banks misrepresented the quality of the mortgage-backed securities. The Federal Housing Finance Agency is expected to seek billions in compensation.

At 8AM (CT) the APMEX precious metal prices were:

Gold price - $1,882.40 -- up $51.30
Silver price - $43.15 - up $1.35
Platinum price - $1,880.60 -- up $26.70
Palladium price - $786.30 -- down $4.20

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Mid-day Gold & Silver Market Report -- 9/2/2011
(Timothy Oakes), APMEX - Commentaries

ZERO JOBS GROWTH = LACK OF CONFIDENCE

Precious metals have remained steady since the Morning Gold & Silver Market Report. Precious metals are up for the day based on the relatively poor jobs report this morning. Talk of recession tends to stoke the safe haven appeal of precious metals when disappointing news hits the market, since stocks and oil tumbles.

Most economists are of the opinion, however, that the data is not a clear indicator that a recession is taking place. The key component to the data was it did include the striking Verizon workers, which accounted for 45,000 unemployed persons added into the total number of unemployed. "The extreme uncertainty over the outcome of the debt-ceiling debate probably did extra damage to the August (job) figures," said Nigel Gault, chief U.S. economist at IHS Global Insight in Lexington, Massachusetts.

The news out of Europe continues to be bleak as the IMF is said to oppose any plan that involves Greece being forced to put up collateral. That opposition threatens to hold up Europe's effort to provide aid. The concern is the political agendas in place through the 17-country region not only threaten the aid but also the implementation of other measures such as the EFSF (European Financial Stability Facility). Germany wants to have controlling veto power over the EFSF's implementation.

At 12:13 PM (CT) the APMEX precious metal prices were:

Gold price - $1,878.20 -- up $47.10
Silver price - $43.09 - up $1.49
Platinum price - $1,885.30 -- up $31.40
Palladium price - $779.50 -- down $10.90

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Closing Gold & Silver Market Report -- 9/2/2011
(Peter LaTona), APMEX - Commentaries

The Worst Jobs Report in Over a Year Send Gold & Silver Soaring

The equity and precious metals markets continued digesting today's dismal August jobs report. The U.S. stock market closed down 253 points, while gold and silver prices shot upwards. Zero job growth was not the news economists expected and this only added fuel to the fear of another recession. Zero job growth creates additional pressure on President Obama, the Congress and the Federal Reserve to do something to add stimulus to the economy. As we move into the Labor Day Weekend, the jobs issue is firmly entrenched as our nation's number one priority. President Obama is scheduled to lay out his job plans in a speech next Thursday.

After today's jobs report, if you are an investor in U.S. government bonds, you now see additional Fed intervention as a sure thing. The general opinion is that the Fed will announce a plan to sell short-term treasury debt and purchase long term bonds. Known in the financial markets as "Operation Twist", the goal would be to flatten the yield curve, lower long-term interest rates and thus stimulate the economy.

At 4PM (CT) the APMEX precious metal prices were:

Gold price - $1,887.30 -- up $56.20
Silver price - $43.38 -- up $1.78
Platinum price - $1,886.30 -- up $32.40
Palladium price - $777.60 -- down $12.80