Gold ended the day $10 up, gaining back some of the losses from the day before. Silver closed up for the day as well.
Jobs numers were weaker than expected for both private sectors and non-farm payrolls, which caused the rebound in metals.
More talk of QE came up again today as the numbers from the labor department caused the Fed. to consider more alternatives to jump start the economy.
The first week of November is going to be key to metals as both the US Federal Reserve and the Bank of England will be considering the option of injecting more cash in to their struggling economies through quantatitive easing.
From what we are hearing, the rise in metals should be taken advantage of for short term profits. A correction seems to be the consensus among the majority of the precious metals traders and dealers we consult. Stairsteps are what’s needed to make a further rise healthy, and a correction is needed to create that next step. Silver is way over bought at the moment and statistically speaking “prime for a correction”
No one has gone against higher prices in precious metals before the end of the year, but all are anticipating an opportunity to take some profits during the rise on both sides, up and down.
Seeking Alpha conducted an interview with David Morgan about the current silver market. Read it here;