Gold prices in the global market jumped moderately higher, and hit a six week high during early hours of trading on Friday. The United States job report came out early in the morning, and did not meet the expectations of those in the market. The key jobs growth component was fairly low, and triggered a rise in the gold market.
Gold futures for February were up by $5.50 to reach levels of $1,249.1. March Comex Silver also increased by $0.096 per ounce to reach levels of $14.605 per ounce.
The Labor Department Employment Situation Report for the month of November is regarded as arguably one of the most important monthly reports coming from the United States. The report showed that non-farm jobs for the month had come in at 155,000. This figure was well below the expected consensus forecast of 198,000. While this report sits in well with the U.S. monetary policy doves, who would like the United States Federal Reserve to strengthen the monetary policy at a much lower pace, it initiated a rise in the rates for gold.
Stock markets across the world were mixed yesterday, but had stable beginnings today. The marketplace is still filled with anxiety today, regarding the arrest of Huawei’s Chief Financial Officer in Canada. The arrest had sparked fear of further tensions in the trade deal between United States and China, but those tensions have been averted. Huawei is one of the major tech names from the Chinese industrial setting and has a formidable presence in this region. Thus, the arrest of the CFO comes with major repercussions.
The repercussions of the arrest made investors panic and the market suffer the brunt of this confusion. In the face of this confusion, investors looked for solace by running to the gold market. Gold serves as a safe haven for investors looking to safeguard their assets when faced by a precarious socio-economic situation.
Russia’s Gold Output Rises
Russia has been actively involved in producing gold, and has reportedly increased the output for the first 10 months of 2018, compared to what it was during the first 10 months of 2017. Official documents from Russia suggest that the country has produced 264.99 tonnes of gold from January to October of this year. During the same period last year, Russia produced around 261.17 tonnes. The figures were released by the financial ministry during Friday.
Silver production for the year didn’t track gold, as it went down to 856.3 tonnes from 875.72 it was for last year.
Gold to Retake Gains and Palladium to have Tremendous 2019
Bill Baruch, President of Blue Line Futures believes that Gold will see a great year as a safe haven asset during 2019 and Palladium will be redefined. “You may have to see through a bit of pain the first quarter of next year, if the global market has a bit of uncertainty, but I think if you manage your risks to the downside, palladium, building up a position in the first quarter of next year, is going to be a tremendous gain throughout 2019,” Baruch told the media.