The Labor Department is scheduled to release September’s jobs report later this morning and the consensus among economists polled is that the U.S. added 220,000 non-farm jobs during the month. The August jobs report was well below expectations at 142,000 new jobs, but most experts believe that August was an anomaly in an otherwise improving jobs market.
As always, the payroll figures tend to have a large impact on the precious metals market. If actual payroll figures are in line or beat expectations, we would expect a pullback in the gold and silver markets, as the Federal Reserve is likely to proceed with their tighter monetary policies. However, a disappointing jobs report could bode well for gold and silver, as it may cause the Federal Reserve to reconsider the reduction and/or removal of their stimulus efforts.
This writer personally believes that the employment situation in the U.S. is not as strong as most experts believe and wouldn’t be surprised if we see another disappointing jobs report in September.