Weekly Gold Report for Friday March 4th, 2016
April Gold settles 1270.7, up $50.40 for the week of February 29th through March 4th
Gold futures extended Thursday’s two percent rally pushing up to multi year highs slightly above 1280.0 an ounce before pulling back on the close. This week’s best levels were achieved following this week’s non-farm payroll data that showed 242K jobs were created last month, while the unemployment level held at an eight year low at 4.9 percent. Silver, platinum, and palladium futures were also up significantly this week as well. Despite a pullback in late Friday afternoon trading of about $16.00 from the weekly high, the gold market continues to forge a very impressive upside breakout in the wake of ongoing global economic uncertainty and a spread of negative interest rates abroad. ETF holdings continue to rise and as of Thursday afternoon they had risen up to the highest level since September 14th. Simply put investors are taking the precious metals sector bid amid all uncertainty. While today’s non-farm payroll number came in better than expected with prior month revisions for the better, a look inside the numbers disappointed as wages declined.
Next up for investors is the ECB meeting later next week on March 10th. It is widely expected that ECB President Draghi will enact more stimulus measures to try to stimulate its weak economy. The week after is the two day meeting of the FOMC on the 15th and 16th with a policy announcement following the two day meeting. Next upside targets for gold basis is the 2015 high at 1308.0 and then next week’s second resistance at 1320.0. In my view gold needs to hold the 1228.0 level on any pullback to remain in the uptrend.