October jobs report encouraging; Gold drops below key level

The final jobs report before Tuesday’s U.S. presidential election showed an increase of 171,000 new jobs in October, which is higher than many analysts predicted. However, the unemployment rate in the country also increased to 7.9 percent. The U.S. dollar gained and Precious Metal prices fell after the news, with Silver dropping below $32 and Gold dropping below the key $1,700 level.

Even with this morning’s drop, Gold traders are still bullish on the yellow metal. The majority of analysts participating in a Bloomberg survey expect the price to increase next week. One analyst said, “Central banks are all very concerned about a depression, so they’re keeping monetary policies as loose as possible. People are buying Gold as a store of value to protect against currency depreciation.”

At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:

  • Gold, $1,696.70, Down $19.80.
  • Silver, $31.82, Down $0.46.
  • Platinum, $1,554.70, Down $16.00.
  • Palladium, $608.90, Down $4.60.