November 2 Morning Market Update

November 2nd, 2012 by

It’s Friday, which means we get the latest jobs report that everyone’s been waiting on all week. Analysts expect good news, which, combined with manufacturing beating estimates, has strengthened the dollar.  Gold was trading in a narrow range between $1,713 and $1,707 an ounce before the NY COMEX opened, whereupon it promptly crashed through the $1,700 floor to a little less than $1,693/oz.

Good economic numbers combined with consumer confidence in October being the highest in 4 years points to an improving economy right before the election, leaving November 6 the only, and biggest, short term question mark. An Obama win will mean the Fed continues with its announced plans of quantitative easement, which should boost gold prices as more and more paper money floods the system. If Mr. Romney wins, all bets are off as to what the government’s economic policy will be, as he and Mr. Ryan attempt to get their ambitious plans through Congress.

At half an hour past the morning bell, gold is still under $1,700/oz, at $1,697, and silver is at $31.90/oz, not terribly far from yesterday’s highs.

– by David Peterson