Gold Pushes to Rally as Employment Data Disappoints | The Gold Forecast

Gold Pushes to Rally as Employment Data Disappoints

September 2, 2016 - 5:36pm

 by Gary Wagner

Gary S. Wagner - Executive Producer

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Gold Forecast: Proper Action

This morning just following the release of this month's jobs report data we sent out a trade recommendation to enter long positions in both gold and silver.

Maintain your current long gold at 1328 (Dec comex), 1324 (spot)

Maintain your current stop below 1305 (Dec Comex) 1301 (spot)

Maintain your current long silver at 19.17 (Comex) 19.11 (spot)

Maintain your current stop below 18.50 (Comex) 18.41 (spot)

Gold Market Forecast

An interesting week, and most interesting conclusion not only to the week but to the summer, as this month's jobs report data is released.

Like Goldilocks as she found that perfect bowl of porridge which was not too hot and not too cold, today's jobs numbers were not strong enough to instigate a higher probability of an interest rate hike in September, yet not so weak as to summon real concern in terms of the economy's strength.

Our economy continues to grow, robust in many sectors, but with the underlying characteristic of slow growth.

That being the case, US equities were able to rally, as was the precious metals complex. On today's video report we will detail our current trades in both gold and silver. We will begin to discuss our exit strategy and upside targets for our trades on Monday.

Trending Markets Forecast

A most interesting conclusion to this week's activity in US equities markets, which had been trading in essence sideways to slightly lower.

The jobs report data came in well under expectations. Whereas expectations were that we would add about 180,000 new jobs and the unemployment rate would drop to 4.8%, the actual numbers were 151,000 new jobs with the unemployment rate remaining steady at 4.9%.

The interesting conclusion is that even with a lower-than-expected number of jobs created, US equities staged a moderate rally moving back near record highs. The jobs report in essence alludes to the fact that we continue to have an economy that grows, although the growth itself is extremely tepid.

Sentiment Indicator: