Gold & Silver Morning Update 12/16/202 | The Bregar Minute
Some pre-NFP anxiety indeed for the precious metals overnight, with spillover stock market selling in Asia (after yesterday’s Wall Street decline) knocking gold & silver down into their 100hr moving averages. Bitcoin bounced at the European open though, the S&P futures then regained Friday’s lows during the 5amET, and EURUSD broke above yesterday’s high during the 7amET hour; hinting that this morning’s NFP data could be bad after-all. Sure enough it was (net 41k jobs lost over October & November, and if you consider Powell’s view that every month has been overstated by 60k of late, perhaps the real combined job loss over those two months was 161k). I’m in absolute awe at how the bond market knee jerked higher on the news, but has now reversed lower…just shows how broken fixed income has become. The precious metal bulls thankfully see the truth however, and have now rocketed gold back up into the middle of yesterday’s range. The FX market is trying to ignore the bond market as well. If the stock market does the same here as well and redefends Friday’s low as new support, then I think the precious metals (especially silver) could trend higher for the rest of the day. Up next are the US flash December PMIs at 9:45amET.
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