Gold Breaks Even, Oil Moves Lower as Markets Zig-Zag
Its been something of an up and down day on Wall Street. All three major indices are now in the green after dipping as low as -2% earlier in trading. Today’s jobs report had investors thinking bullish as the numbers lowered the official unemployment rate from 9.2-9.1%, though shortly thereafter skepticism emerged over the significance of that move, with analysts attributing the decline to a removal of workers from the labor pool rather than a significant gain in hirings. The US dollar (NYSE:UDN), which normally trades inversely with precious metals (NYSE:DBP) and some commodities (NYSE:RJI), has also flip-flopped wildly in trading as news from Europe has sent it up and down and back up again versus the euro. Currently the dollar index has declined -0.92% against a basket of foreign currencies. Gold (NYSE:GLD), which has also moved with a high degree of volatility Friday, is hovering around level from yesterday’s close at just over $1,660 per ounce. “The downside in gold remains limited and the late June uptrend is well intact,” added Andrey Kryuchenkov of VTC Capital. Silver (NYSE:SLV) has sold off well into the red today, falling -2.75% in trades.
Investing Insights: Precious Metals: Gold and Silver Are Firing On All Cylinders.
Oil (NYSE:USO) prices have moved lower and currently sit at around $86 per barrel of crude oil after losing over 6% in yesterday’s panicked sell-off. Oil (NYSE:OIL) has lost 9.2% this week and after falling slightly in the month of July. “The oil markets are at least considering a swing back to the upside Friday,” said Citigroup’s (NYSE:C) Tim Evans. Gasoline (NYSE:UGA) has risen over 2.3% to $2.77 per gallon after falling steeply yesterday. Energy prices continue to move in tandem with the major indices, yet given the volatility of Friday’s market there could still be major swings before the closing bell rings.