The U.S. job report September 2022 resulted in silver and gold losing their U.S. dollars value on Friday, October 7. It is not far from falling below $1700 for gold per troy-ounce, but silver prices are hovering close to the $20 threshold.
Precious Metals Price Patterns Follow Friday’s Equity Market Rout and Crypto Carnage
Just before the weekend, Wall Street’s major indices tumbled as the latest U.S. jobs report for September is making investors believe the Federal Reserve will continue its aggressive rate hikes. Bitcoin (BTC), and ethereum, both fell 3.4% to the U.S. Dollar during the last 24 hours. On Friday, the total crypto-economy was valued at approximately $979 billion. At 2:02 p.m. ET it has fallen 2.4%. In addition to the crypto economy, all four major precious metals — gold, silver, platinum, and palladium are down between 0.64% to 3.32%.
Kitco’s precious metals senior market analyst and columnist Jim Wyckoff detailed on Friday afternoon that the data stemming from the U.S. jobs report was “arguably the most important U.S. data point of the week.” Wyckoff noted that the official data was 263,000 jobs, “which was just below the expected rise of 275,000.” The news, Wyckoff reckons, may lead to the U.S. central bank keeping its aggressive stance going strong.
“The August report showed non-farm jobs rise of 315,000. The U.S. unemployment rate dropped to 3.5% in September, which was lower than expected,” Wyckoff wrote on Friday. “The August jobless rate was 3.7%. The average hourly wage was up by 4.98% compared to last year. The marketplace reckons the jobs report did nothing to dissuade the Federal Reserve from its aggressively tight monetary policy,” the senior market analyst added.
As with equity and cryptocurrency markets gold markets also felt the impact of U.S. data points. As of the writing of this post, the U.S. dollar nominal value of one troy-ounce of.999 pure gold is 1,701.40/unit. Gold prices dropped below $1,700 on Friday at some exchanges, with an average of $1,699 for each ounce.
Silver is also nearing dropping below the $20 threshold on Friday, as it’s 20.35 nominal U.S. dollar per ounce of silver as the weekend approaches. Gold’s USD value per ounce is down 0.64% and silver is down 1.87% during the last 24 hours. Platinum shed 0.33% and palladium’s price slid by 3.32% on Friday afternoon (ET).
“Technically, the December gold futures bears have the overall near-term technical advantage. However, recent gains begin to suggest a market bottom is in place,” Wyckoff explained. An analyst in the precious metals market said silver futures are also a benefit.
“September silver futures bulls have [a]Technical advantage in the near term is slight. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $22.00. The next downside price objective for the bears is closing prices below solid support at $19.00,” Wyckoff’s report details.
The analyst’s statements concerning the formation of a market bottom are similar to Mike McGlone’s recent analysis. The Bloomberg Intelligence commodity analyst explained in a recent commodities report for October that he saw the price of gold forming in a similar fashion to the way it did in 1999.
In addition to gold resuming its rally in the near future, McGlone added in his October crypto report that when the “ebbing economic tide turns,” McGlone and his team see “propensity resuming” for bitcoin (BTC) and ethereum (ETH) and he believes they will “outperform most major assets.”
What do you think about gold and silver’s recent decline during the last 24 hours and following the latest U.S. jobs report? Comment below and let us know how you feel about the subject.
Images CreditsShutterstock. Pixabay. Wiki Commons
DisclaimerThis information is provided for educational purposes only. This is not an invitation to purchase or sell directly, nor a suggestion or endorsement of products, services or companies. Bitcoin.com is not a provider of investment, tax, legal or accounting advice. The author and the company are not responsible for any loss or damage caused by the content or use of any goods, services, or information mentioned in the article.