After falling below $1,200 last Friday with the release of September’s jobs report, Monday saw investors having second thoughts about the data. Gold rebounded 1.3% and silver more than doubled gold’s gains, soaring almost 3%. A Reuters‘ article attributes the turnaround to a “sharp retreat” in the U.S. dollar [see above chart] that “sparked fresh physical demand and short covering.” It quotes one metals’ strategist as saying, “The spate of economic news has put downward pressure on gold, but the payrolls report might have painted a much better picture for the job market than what it really is,” specifically stagnant wages. “The dollar fell as much as 0.9 percent against a basket of 10 currencies,” reports Bloomberg, “as uneven U.S. labor-market data fuels speculation on when the Federal Reserve will raise interest rates.”
Trading Floor: Are you aware of the potential Swiss gold shock?
Bloomberg: The world’s most powerful central banker: Janet who?