Precious metals have fought their way off the ropes the past few days as it was beginning to feel like the knockout punch was coming. A less aggressive stimulus package put forth by the European Central Bank yesterday caused the Euro to rally over 3 percent versus the USD which in turn brought broad based buying to our market. This morning’s U.S. Non-Farm payroll report came in close to consensus estimates of 200,000 as the U.S. economy generated 211,000 new jobs in November. The unemployment rate held steady at 5.00 percent which remains a 7 ½ year low. This would appear to be the last bit of positive data the FOMC needed to see before raising rates later this month. The big question that will linger over all markets early in 2016 will be when will the second rate hike come and what will the impact be on all markets. The expected hike to come this month now appears to be “priced in”.
As we continue to see, investors of all sizes continue to be attracted to our market on the dips. U.S. Mint data shows they sold 97,000 ounces of gold in November which was a huge increase of 185 percent from Octobers results. Silver Eagle sales posted a strong gain in November as well with 2015 sales of silver Eagles setting a new record at 44.67 million ounces.
As I finish today’s commentary, gold is leading the charge higher as physical demand is robust and shorts are covering. We are now at the top of the resistance band and testing $1,085.00.