Gold spot price continues to sink as the Thursday morning Jobless Claims report was published, indicating a strengthening labor market. Jobless claims came in roughly 7,000 under consensus, adding fire to December interest rate hike speculations and sending precious metal spot prices downward to a low of $1252.69.
The true significance of the latest job market report is in its relation to the end of year FOMC meeting. A growing labor market allows hawkish Fed officials to justify increased interest rates in an attempt to decrease inflation.
While gold prices have risen 25% during 2016, the current uncertainty surrounding interest rates and the upcoming election have created an extraordinarily volatile market. The strengthened US dollar has made a profound impact on the price of precious metal bullion, (most notably, gold), as well. This perfect storm of influential factors on the precious metals market has gold and silver price forecasts anticipating continued market uncertainty throughout the remainder of 2016, as Election Day draws near and the December FOMC grows close.
