Gold prices held firm on Friday 06/12/13, despite the strong US Non-Farm payrolls report, which showed 203,000 job creations in the US last month. This number, above expectations of around 180,000 job creations, capped off an impressive weak of US employment data, with initial jobless claims falling below 300,000, and the ADP report also 'beating', showing a gain of 215,000 jobs vs. 170,000 expected. Not only that, but the US unemployment rate dropped to 7%, a 5 year low, despite the LFPR rising to 63%. On top of this, we had a solid rise in ISM manufacturing, consumer confidence rose to 82.5 (well above expectations), surging US consumer credit growth and we had a GDP print of 3.6% as well. All in all a very strong data, but gold managed to hold US $1230 regardless. Short-term respite perhaps, or it could be a sign this correction is nearing its end.
ABC Bullion Chief Economist. Gold bull since early 2000s, have spent +20yrs working in investment analytics, research & portfolio construction. Author of two books on investing in gold and causes of the GFC. Lover of markets, competition & technology