Today marks the first Monday of October, and we are coming off a headlining report Friday — one that says unemployment is at just 3.5%, or its lowest level since 1969. However, despite news that seems positive on the surface, the devil was in the details. According to the U.S. Department of Labor, 135,000 new jobs were created last month — some 10,000 fewer than the 145,000 projected. The news spurred some losses for gold prices on Friday, with gold opening the day at around $1,509 and closing at $1,505.
What will the week ahead look like? What do investors think of the job reports showing less growth than anticipated? Certainly the news of low unemployment is a good thing. But it’s a mixed blessing with the revelation that job growth as slower than anticipated. And this can prompt some investors to wonder if the economy is on the verge of sputtering.
A lot depends on how the next Federal Reserve meeting goes late this month. Will the Fed drop interest rates again? Federal Reserve Chairman Jerome Hayden Powell says more interest rate drops may come depending on data reports. And there are still several other factors at play, including the ongoing impeachment inquiry of President Donald Trump — something that could vastly affect the tenor of the market. Meanwhile, trade debates and woes in the Middle East continue. The next weeks could be tumultuous, and bullion investors should buckle up.
