A day after gold hit a three-week high, and the dollar hit a four-week low, positions are reversed as better than expected employment numbers send stocks higher.
The Labor Department announced non-farm payrolls rose 175,000 in May, and revised April’s numbers downward 16,000 to 149,000. The May numbers were 10,000 more than analysts had forecast. The unemployment rate was said to have advanced to 7.6%, and recent graduates entered the workforce, and improved consumer sentiment drew more unemployed persons back into the job market.
The market had talked itself into believing that the payroll numbers would be lower, and took off on the news, while the dollar rallied on the numbers in the belief that the scaling back of the Fed’s quantitative easing has moved closer.
This of course has put pressure on precious metals, where sell stops were triggered after the Labor Department report. Gold was down as much as $30 in late morning trading, with silver and the PGMs echoing the move.