Gold struggles to stay positive after last week’s steep sell-off
Markets unsure how to read Friday’s explosive jobs number

(USAGOLD – 2/6/2023) – Gold struggled to stay positive this morning in the wake of last week’s steep selloff. It is up $7 at $1875. Silver is up 7¢ at $22.50. Judging from the reaction, the markets are not sure how to read Friday’s explosive jobs number. An anomaly? A return of the phantom workforce that disappeared during the pandemic? A repudiation of the recession scenario? Outright inflation? Of course, the most important reading will be the Fed’s, and it is likely to remain cautious.

Gold Newsletter‘s Brien Lundin offered the following summation of Friday’s events in the gold market: “Gold is being hit this morning because the positive surprise on the jobs number is a strong indication that the Fed has more than a single rate hike left in it. Unfortunately for the bulls, it’s being hit harder than equities because it’s been outperforming stocks over the last few months. Profits are being taken by those who have enjoyed that ride.”

Editor’s note:  As we pointed out in late January, with hedge funds back in the gold market, we should expect more volatility and technical trading at key chart numbers.This break actually began on Thursday with selling at the $1960 mark. Friday’s jobs number accelerated the downtrend.)

Gold Price
(1/30/2023 through 2/3/2023)
bar chart showing gold price and volumes Jan 30 through Feb 3
Chart courtesy of • • • Click to enlarge

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