Gold Hit With One-Two Punch
Read on for the good news
On Friday, two announcements combined to hit gold and silver about as hard as they’ve ever been hit.
First, the US jobs report, as usual, came in far hotter than expected, which led credulous headline readers to conclude that the economy is booming and interest rates will have to stay higher for longer. If true, that’s bad for gold and silver, which don’t do well in a high-real-interest-rate environment.
But it’s not true. The US government is all about narrative management, especially in an election year. And the jobs report is where it runs its biggest scam.
Zero Hedge does a public service by dissecting each monthly jobs report to show, basically, the following: The number of full-time jobs is shrinking and all net jobs growth is in part-time work. And the number of jobs held by workers born in the US is shrinking while net new jobs are going to people who were born elsewhere. These are not signs of a healthy economy and definitely don’t point towards monetary tightening. Read the full analysis here: Inside The Most Ridiculous Jobs Report In Years.
The other announcement was that China’s central bank, the biggest buyer of gold for the past few years, didn’t buy any in May.
Gold Price Sinks to 1-Month Low as China Stops Buying
(BullionVault) – Gold prices sank in all major currencies on Friday, dropping $80 an ounce in 6 hours on the news that the People’s Bank of China didn’t buy any bullion for its official reserves last month.
That snapped 18 months of continuous gold buying by Beijing as May set a new record-high gold price for the 3rd month running in US Dollar terms.
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