The gold market is spinning its wheels, caught in a stalemate, which could create some profit-taking among investors and weigh on prices in the near term.
On Saturday McCrae recorded Kitco Roundtable.
Heading into the weekend, markets continue to digest the disappointing nonfarm payrolls numbers. The U.S. economy created 175,000 jobs last month, according to the Bureau of Labor Statistics. The monthly figure missed expectations as economists were looking for job gains of 238,000, noted editor Neils Christensen.
At the same time, the unemployment rate increased, and wages didn’t rise as much as expected.
This was initially good news for the gold market, and prices briefly popped; however, in a fatigued market, many traders used the rally to sell. The gold market has managed to hold support above $2,300 an ounce, but it is ending the week with a roughly 1% loss.
Deal of the week was Pan American Silver (NYSE: PAAS) announced today it will sell its 100% interest in La Arena S.A. , which owns the La Arena gold mine as well as the La Arena II project in Peru, to Zijin Mining Group for $245 million cash upfront and a $50 million contingent payment.
Kitco Roundtable is sponsored by Snowline Gold.
