Gold and silver sharply declined for the fourth consecutive business day. Yesterday both metals were traded down following the U.S jobless claims and sharply fell even below expectations. On the other hand the U.S non-manufacturing PMI dropped to 53.5. The forex market didn't move much but U.S stock markets and major commodities prices declined during yesterday's trading. It was also reported that gold producers (including Barrick) aren't doing well as their suffering from rising labor costs and delays. ECB President took a page from Bernanke's book and also didn't introduce additional stimulus plan or another rate cut.
Today, the U.S non-farm report will come out and there are exceptions it won't be much better than last month's report. This news items may stir up the markets including bullion markets. The full daily analysis on gold and silver for May 4th
Gold sharply declined on Thursday by 1.16% to $1,634.8; silver also declined by 2.07% to $30.01. During the week gold decreased by 1.8% and silver by 4.5%.
On Today's Agenda
U.S. Non-Farm Payroll: in the previous report for March, the U.S employment market didn't improve as it did in the previous months as the number of non-farm payroll employment increased by only 120k; this report might affect bullion. The chart below should give you some sense of the linear correlation between the news of the labor market and the changes in the daily percent changes in bullion prices.
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