Gold and silver both recorded positive gains on a day when economic data was adversarial to the spot values of precious metals. The first bit of economic data released this week came in the form of the ADP National Employment Report which came in much better than market expectations.
As we look ahead to tomorrow, both a US GDP report and European Central Bank meting will be catching the attention of investors. Though no major policy shifts are expected to come as a result of the ECB policy meeting, investors will want to hear what president Mario Draghi has to say about the ECB’s recent decision to cut its key lending rate. The GDP report is not being weighted as heavily as Friday’s US jobs data, but will be a point of interest for investors nonetheless.
Bargain-Hunting In Full Force
With gold opening the day at one of their lowest points in the last half year, it is no surprise that so many investors awoke today with bargain hunting on their mind. In fact, the intense amount of bargain-hunting buying going on today was enough to cancel out the downward pressure being placed on gold and silver as a result of the better than expected employment report.
Though gold and silver may not be able to maintain a positive run for the duration of the week, today’s gains were a nice respite from precious metal’s recently woeful run.
Upbeat ADP National Employment Report
Though investors are looking much more forward to Friday’s jobs data, today’s ADP national employment report caught the attention of some. Compared to market expectations of about a 170,000 rise in workers during November, the employment report showed that there was actually a 215,000 increase in the amount of workers added to the workforce.
Though this data works against the prospects of gold and silver, bargain-hunting was intense enough to cancel out any bearish pressure emitted from the employment report. Investors are gearing up for tomorrow’s ECB meeting as well as Friday’s jobs data, the latter of the two standing a good chance to alter the spot values of gold and silver.