Gold & Gold Miners Boosted By NFPs

Gold & Gold Miners Boosted By NFPs

Gold & Gold Miners Boosted By NFPs

$GLD, $NUGT

The precious Yellow metal had its biggest gainer in 11 weeks after the US added the fewest workers in almost 6 years, weakening the case for the Fed to raise interest rates anytime soon.

Last week, before the jobs report, a gauge of volatility in bullion fell to an almost 4-month low, and the volume of US futures during the week was the least since the start of the year.

But, mining shares rose.

Bullion is coming off of its biggest monthly loss since November after questionable signs of an improving US economy spurred speculation that the Fed could tighten monetary policy at the 15 June meet.

Higher rates lessen Gold’s appeal Vs interest-bearing assets.

Those bets retreated on Friday, with the odds of a June interest rate rise dropping to 4%, from 30% a week ago, according to CME Fed funds futures.

Gold futures for August delivery rose 2.5% to settle at 1,242.90 oz at 1:45p Friday on the COMEX in New York, marking the biggest gainer for a most-active contract since 17 March. Trading was 14% above the 100-Day MA according to the data.

Gold initially rose last month after a disappointing NFPs (non-farm payrolls ) report for April, before succumbing to a stronger USD that trimmed demand for Gold as an alternative asset.

HeffX-LTN Analysis for GLD:  Overall Short Intermediate Long
Neutral (0.18) Neutral (-0.15) Bullish (0.31) Bullish (0.38)
HeffX-LTN Analysis for NUGT: Overall Short Intermediate Long
Bullish (0.32) Neutral (0.15) Bullish (0.25) Very Bullish (0.56)

Have a terrific weekend.

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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