Class Is Now In Session

Good Day,

Speculation early this morning was that U.S. employers likely have cut only 150,000 jobs in the month of October, a figure which would be the lowest in more than a year. The worst labor-market slump since the 1930s is now seen as possibly bottoming out, and the possibility of future consumer spending is now seen as adding to US and global economic growth.

The actual numbers, however showed a bit of a different reality, as the U.S. economy shed 190,000 jobs last month, lifting the unemployment rate above the 10% mark (to 10.2%) for the first time in 26 years, the Labor Department said. Economists were looking for the unemployment rate to rise to 9.9%

Following yesterday’s brief pause and minuscule retracement, gold prices remained within striking distance of the $1100 level early this morning, as speculative interest was banking on Friday’s US jobs report to yield further fuel for what has now become a routine spec fund-driven play. That is, when/if economic news is good, the dollar sinks and risk appetite reignites on the perception that such good news will drive the Fed to keep handing out essentially free money with which to go out and buy… stuff. Read the rest of this entry »

New York gold futures reached a fresh all-time high on Wednesday after the Federal Reserve kept interest rates and its monetary policy unchanged, which helped push the US dollar lower and made the yellow metal more attractive. Silver and platinum followed along, as did crude oil. For a second straight day, US stocks closed mixed.

New York precious metal figures follow:

• Silver for December delivery rose 22.5 cents, or 1.3 percent, to $17.405 an ounce. It ranged from $17.105 to $17.635.

• Gold for December delivery advanced $2.40, or 0.2 percent, to $1,087.30 an ounce. It ranged from $1,080.50 to $1,098.50.

• January platinum climbed $13.10, or 1.0 percent, to $1,369.30 an ounce.

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A Turkey for Turkey, The UK Lays an Economic Egg, and Russia Sells…Gold?!

Good Day,

Gold prices continued to remain ‘in the zone’ (the $1040-$1070 zone, that is) overnight, with little in the way of fresh market-impactful news making their way into the media stream. The US dollar remained at or very near the 1.50 pivotal level against the euro, but climbed away from the 75-mark on the trade-weighted index. Oil prices hovered just above $81.25 per barrel, while a lackluster session in the Nikkei ended with tiny gains.

New York spot metals dealings opened on a mixed note this morning, as pre-weekend book-squaring and dollar gains made for a bit more than the recently witnessed –and practically daily-one-way fund buying spree. Gold started the Friday session at $1060.00 exactly, basis spot bid, a gain of $0.20 per ounce, as against a tick at the 75.29 level by the dollar on the index. Today’s ‘to watch’ agenda contains US existing home sales data, and a Bernanke speech in Boston. Also keep an eye on closing levels - this is now the fourth week of potential gains before the tally is over. Read the rest of this entry »

The cost of living in the US rose slower in September, easing concerns of higher inflation which over the past 12 months has fallen more than one percent, according to a Labor Department report released Thursday.

Consumer prices edged higher last month by 0.2 percent, following a 0.4 percent climb in August. Core consumer prices, which exclude volatile food and energy costs, also rose by 0.2 percent.

"Today’s figures won’t shift the argument about inflation risks at the Fed. They don’t show deflation, but nor do they show sufficient inflation pressures to make the doves want to tighten soon," Nigel Gault, chief U.S. economist at IHS Global Insight in Lexington, Massachusetts, was quoted on Reuters.

Annual US inflation fell 1.3 percent. Core annual inflation rose 1.5% from September 2008 following the 1.4% increase in the 12 months ending in August. Read the rest of this entry »

The cost of living in the US increased slightly in August, but prices were cheaper compared to 12 months ago, a new report released Wednesday by the Labor Department reveals.

Annual US inflation dropped 1.5 percent after a 2.1% decline in the 12 months ending in July. The decrease was largely due to lower gasoline costs as compared to the spiked prices from last summer.

When volatile food and energy prices were excluded, the 12-month core rate increased 1.4 percent — still, it is the smallest year-over-year gain since February 2004

The Consumer Price Index, which is the government’s most closely watched barometer for measuring inflation at the consumer level, climbed 0.4% in August. The rate increase was driven by a 9.1 percent surge in gasoline prices. Read the rest of this entry »

The cost of living in the US remained unchanged in July while annual inflation fell the most since January 1950, or nearly 60 years, the Labor Department reported Friday.

The government’s Consumer Price Index shows year-over-year inflation declined 2.1%, cut down by sharply lower energy costs as compared to last year when gasoline prices were over $4 a gallon. July prices were also held in check by falling energy prices.

“In the months ahead, we expect U.S. consumer prices to soften further, and headline consumer price inflation to remain in negative territory (at least through to some time in the fall), before beginning to creep above zero as the expected economic recovery gathers traction,” Millan Mulraine, economics strategist with TD Securities, in a research note, was quoted on MarketWatch.

Core consumer prices, which exclude volatile food and energy costs, rose by 0.1 percent in July. The core CPI is up 1.5 percent over the past year, which is well within the Federal Reserve’s comfort zone of 1-2 percent. Read the rest of this entry »

It was a banner day Wednesday for precious metals, oil and U.S. stocks. Gold briefly climbed above $941 and silver topped $13. In the end, the yellow metal retreated from its intraday high but still closed to its best level in nearly two weeks. Platinum advanced as well while crude-oil broke a three-day losing streak on news of increased demand from refiners. U.S. stocks rallied with all three major indexes rising at least 3 percent.

In New York trading futures for bullion:

• Silver for September delivery jumped 35.3 cents, or 2.7 percent, to 13.208 an ounce.

• Gold for August delivery rose $16.60, or 1.8 percent, to $939.40 an ounce.

• October platinum gained by $22.80, or 2.0 percent, to $1,157.90 an ounce.

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The U.S. cost of living jumped in June while year-over-year inflation declined by the sharpest amount in 59 years, new government data shows.

Consumer prices rose 0.7 percent last month, largely due to a 17.3 percent surge in gasoline prices, the Labor Department reported Wednesday.

While gasoline prices peaked, they were no match for prior year figures when unleaded gasoline reached over $4 a gallon. The twelve-month decline in energy prices is greatly responsible for annual inflation falling 1.4 percent – the largest drop since January 1950.

Core consumer prices, which exclude volatile food and energy prices, rose by 0.2 percent in June. The core CPI is up 1.7 percent over the past year and is well within the Federal Reserve’s comfort zone of 1-2 percent. Read the rest of this entry »

Gold and silver climbed on Wednesday for the second straight day while platinum rose for the first time this week. A rallying U.S. dollar trimmed some of the yellow metal’s earlier gains, and was cited as a catalyst in pushing crude-oil prices lower. U.S. stocks ended mixed.

In New York trading futures for bullion:

• Silver for July delivery climbed 6.5 cents, or 0.5 percent, to $13.91 an ounce.

• Gold for August delivery gained $10.10, or 1.1 percent, to $934.40 an ounce.

• July platinum rose $2.50, or 0.2 percent, to $1,167.90 an ounce.

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Gold climbed Wednesday for the second straight day as the U.S. dollar slid against other world currencies and despite a government report showing an annual dip in inflation. Silver advanced as well but platinum fell short. In other markets, oil closed higher while U.S. stocks ended mixed.

In New York trading futures for bullion:

• Silver for July delivery gained 15 cents, or 1.1 percent, to $14.28 an ounce. Silver reached a low of $13.930 and a high was $14.355.

• Gold for August rose $3.80, or 0.4 percent, to $936.00 an ounce. It ranged from $928.40 to $938.90.

• July platinum fell $15.70, or 1.3 percent, to $1,205.20 an ounce.

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