Gold (GLD) Ticks Higher Following Tepid Nonfarm Numbers, Lower Unemployemnt
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The SPDR Gold Shares (NYSE: GLD) ETF is ticking higher on expectations for further easing by the Fed following nonfarm numbers.
According to the U.S. Dept. of Labor Bureau of Labor Statistics, nonfarm payrolls increased 96,000, compared with expectations for an increase of 130,000.
Further, July's number was revised lower from 163,000 down to 141,000.
However, unemployment dropped 0.2 points to 8.1 percent.
Despite positive numbers earlier in the week from ADP and initial jobless claims, the Fed is most likely to take the new data into consideration when the FOMC meets on September 12th and 13th. In his most recent Jackson Hole speech, Bernanke committed the Fed to remaining ready should the unemployment remain high. Typically, the U.S. wants to see unemployment well below the 8 percent level (though 2 to 4 percent is normal in the healthy economy).
Should additional easing happen, the inflow of dollars into the system will devalue the currency and make dollar-denominated gold contracts cheaper to those outside the U.S.
According to the U.S. Dept. of Labor Bureau of Labor Statistics, nonfarm payrolls increased 96,000, compared with expectations for an increase of 130,000.
Further, July's number was revised lower from 163,000 down to 141,000.
However, unemployment dropped 0.2 points to 8.1 percent.
Despite positive numbers earlier in the week from ADP and initial jobless claims, the Fed is most likely to take the new data into consideration when the FOMC meets on September 12th and 13th. In his most recent Jackson Hole speech, Bernanke committed the Fed to remaining ready should the unemployment remain high. Typically, the U.S. wants to see unemployment well below the 8 percent level (though 2 to 4 percent is normal in the healthy economy).
Should additional easing happen, the inflow of dollars into the system will devalue the currency and make dollar-denominated gold contracts cheaper to those outside the U.S.
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