The 2020 Labor Day holiday has a new and profound meaning | The Gold Forecast

The 2020 Labor Day holiday has a new and profound meaning

September 4, 2020 - 7:52pm

 by Gary Wagner

According to Wikipedia, “Labor Day is a federal holiday in the United States celebrated on the first Monday in September to honor and recognize the American labor movement and the works and contributions of laborers to the development and achievements of the United States. It is the Monday of the long weekend known as Labor Day Weekend. Canada’s Labor Day is also celebrated on the first Monday of September.”

With Labor Day weekend beginning for both the United States and Canada at the conclusion of work today, this year’s celebration has a completely different tone and implication. With the global pandemic causing over 30 million Americans initially losing their employment, and the unemployment rate doubling to nearly 14% in Canada (between February and April). The meaning of this holiday has shifted from celebration to either thankfulness to be gainfully employed, and empathy for those that have themselves or know loved ones that have lost their jobs.

Not since the Great Depression have North Americans faced such a dramatic economic crisis. The unemployment rate in the United States has averaged at approximately 5.76% from 1948 until 2020, until it reached an all-time high of 14.70% in April. The lowest rate during this time was at 2.5% in May 1953.

Today the U.S. Labor Department released its jobs report which indicated that the U.S. unemployment rate fell to 8.4% in August. This marks the fourth consecutive month of declines, but the employment expansion is slowing. Last month the United States added 1.4 million jobs which was 300,000 less than the previous month. However, even with the recent improvement there is a large caveat and warning issued by economists.

According to Politico, “Economists warn the labor market may well have grown weaker since the report was conducted, however. Many expect further layoffs through the fall especially if Congress fails to pass further stimulus relief, as an expected drop in consumer spending, the expiration of a small business relief program and other factors could spur a wave of business closures across the country.”

There is also another side effect to the global pandemic, for some it equates to permanent loss of jobs. Given that nearly 30 million Americans have lost their occupation during this l pandemic, for some their fate is even more dire. Their jobs are going away forever. It is estimated that 3.4 million jobs initially earmarked for temporary layoffs have become permanent cuts.

Betsey Stevenson, a former chief economist at the Labor Department and a member of the Council of economic advisers during the Obama administration said, “This recession has been really confused, because what we had was really a suppression where we told everybody to stay home — and that wasn’t really job loss. The real question is, when you end the suppression, how many jobs are left? And boy, it sure looks like we lost a whole lot of jobs.”

The net result of the global pandemic has changed the meaning of the Labor Day holiday. For those fortunate enough to still be gainfully employed any celebration must contain an enormous amount of empathy and sympathy for those individuals less fortunate. Because this holiday weekend will most certainly have a sobering and somber aspect for those individuals who are still unable to find employment.

One suggestion might be that those of us who are fortunate enough to still be gainfully employed perform one act of random kindness to those less fortunate than us.

Wishing you as always good trading and good health,

Gary S. Wagner - Executive Producer

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Gold Forecast: Proper Action

We are flat with NO active trades after our stops were hit across the board on Wednesday September 2,  resulting in small profits on all trades.

Trades we Closed on September 2

Long December gold @ $1956.50.Stop hit @ $1960 for a profit of $350.00 per contract
Long December silver @ $27.39.Stop hit @ $27.80 for a profit of $2050 per contract
Long forex gold @ $1948.55.Stop hit @ $1955 for a profit of $6.45 per ounce
Long GLD @ $183.57.Stop hit @ $184.36 for a profit of .79 per share
Long SLV @ $25.10.Stop hit @ $25.75  for a profit of .65 per share

Trades we Closed on August 19th

Long September silver at $26.68. Our stop was hit @ $26.87 for a profit of $1000 per contract.
Long December Gold at $1955.50. Our stop was hit @ $1979 for a profit of $2350 per contract
Long Forex Gold at $1947. Our stop was hit @ $1967,52 for a profit of $20.52 per Ounce

Trades we Closed on August 11th

Long September silver at $24.40. Our stop was hit @ $25.99 for a profit of $7950 per contract
Bought  GLD @ $166.74. Our stop was hit @ $$183.00 for a profit of $16.87 per share.
Bought SLV @ $18.00  Our stop was hit @ $23.80 for a profit of $5.80 per share.

Trades We Closed on August 7th

NUGT – we sold all shares and took profits of $33.19 per shareLong December gold at $1997, we covered the trade @ $2035 for a profit of $3800 per contract
Long Forex gold at $1977, we covered the trade @ $2017 for a profit of $40.00 per ounce

Gold Market Forecast

Today’s jobs report from the US Labor Department contained the good, the bad and the ugly. The good news is that 1.4 million jobs were added last month, and that the unemployment rate has dropped to 8.7%. This marks the fourth consecutive month in which the unemployment rate has declined.

The bad is the fact that millions of Americans are still without gainful employment. And then there’s the ugly; the Labor Department reported that 3.4 million jobs were permanently lost. This means that there are millions of individuals that will not have the opportunity to return to their former occupation, and even more so might require retraining and a new skill set to reenter the workforce.

Market Overview

Economic Calendar