Welcome to illuminati silver, we tell you
the truth about silver. Today is Saturday 3rd October 2015 and we
are going to address the rise in gold and silver prices yesterday as a result of the
US Jobs Report. The US economy added just 142,000 jobs in
September compared with an increase forecast by economists of 205,000. The number of new
jobs for August was cut by 37,000 to 136,000 and the July total was also reduced, by 22,000
to 245,000. The number of Americans in the labour force
dropped to a 38-year low. The labour force participation rate – those in work or seeking
employment – plunged to 62.4% in September. The Labor Department numbers reinforced fears
that the China-led global economic slowdown is hitting America’s recovery, adding to doubt
about whether the Federal Reserve will raise rates before 2016. The slowdown is seen by
many as evidence that economic difficulties abroad are beginning to wash up on US shores.
Wall Street opened sharply lower, with the Dow Jones and S&P 500 indexes both down about
1.3%. but later recovered to be up about 0.5% and 0.6% respectively. The FTSE 100, ended
the day up 0.9% at 6,129 points despite also turning negative in afternoon trading.
Tom Porcelli, chief US economist at RBC Capital Markets, described Friday’s non-farm payrolls
report as “absolutely weak”. He added “So if you have a weak report here in combination
with some of the other weakness that we are seeing across the globe, the odds [of a rate
rise] get dinged for December.” Michelle Girard, an economist at RBS Securities
said “Every aspect of the September jobs report was disappointing,”. She also believed that
the Fed “will be forced to stay on hold over the remainder of the year”.
The US dollar also fell to a two-week low and US Treasury yields hit their lowest level
in more than five months. Gold rose 2 per cent to $1,138 a troy ounce
on Friday from a low of $1105. Silver rose more than 5 per cent closing at $15.26 from
a day low of $14.44, also its biggest one-day gain since April. Platinum though rising yesterday
closed the week down 4% at $909.50 Shares in gold miners rebounded on the news
with Barrick Gold up 5.7 per cent in Toronto. The company’s shares have fallen 82 per
cent over the past five years. The gold market has been hit by the strong
dollar this year, which is negative for the metal as gold is priced in dollars. It has
also felt the effect of a slowdown in China and other emerging markets, which has hit
other commodities from copper to oil. Gold is down 4 per cent on the year and 40 per
cent from its 2011 peak in US dollar terms. That has led investors to pull money out of
exchange traded funds that track the metal. Holdings in the SPDR Gold Trust, the largest
gold-backed fund, however, inched up 0.3 per cent on Thursday.
If demand in the largest gold consumer China improves, analysts said gold could hold on
to its gains. The premium for gold on the Shanghai Gold
Exchange over gold futures traded on the Comex gold futures was at $3 to $4 a troy ounce
in August, and rose further to average $6.90 in September, according to Barclays.
That gives banks a clear incentive to import gold to feed retail demand, they said.
China’s shift to a more consumer-driven economy should also benefit jewellery demand,
according to Capital Economics. “A boost to China’s jewellery consumption
should more than offset any potentially negative impact on savings demand,” they said.
China’s central bank reported this week its holdings rose again in August, though
by a slower pace than the previous month. The People’s Bank of China started to report
its gold holdings monthly this year, which has given greater transparency to demand in
the country. Still, other analysts noted that the Fed remained
committed to raising rates, which was likely to hang over gold prices until the first rate
rise took place. “Gold is likely to see periodic ups and downs as expectations adjust
but maintain its downward trend,” analysts at Macquarie said.
Gary Wagner of Kitco News said yesterday : “In my opinion, on a technical basis, we really
need gold to close above $1,157 before I can get bullish long term. Right now, we don’t
have any technical evidence that we’ve broken out of its range.” According to Wagner,
gold’s key levels are now around resistance at the $1,140 and $1,157 price point.
Our short term view is that next week we shall see if there is any follow through on gold
buying and this will dictate the trend for the coming month. Silver is facing a schizophrenic
situation whereas, the slowdown in the global economy will reduce its demand whereas its
demand as a precious metal may likely rise, especially if the dollar falls further next
week. Whilst we hold to our previous position that
gold and silver are still likely to fall by the year end, we cannot discount the possibility
of a weakening dollar while interest rates are likely to remain on hold for some time,
and the potential black swan event occurring with regards to Battle Ground initiatives
by Russia in Syria. We hope you have found this video useful and
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and follow us @illuminatisilv1. Disclaimer: Silver Illuminati owners come from a background
of Banking, International Wealth Management and Economics. Having now retired from these
worlds we are not qualified to give investment advice. Therefore, this and other productions
must not be deemed to be giving such advice and merely represent the personal views of