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Thursday, May 9, 2013

U.S. initial jobless claims numbers will make it difficult for gold

Good Morning,
 
U.S. initial jobless claims numbers will make it difficult for gold to break out of its range bound trading on the upside while physical demand out of Asia cushions the downside despite continued ETF liquidation. Jobless claims shrunk to just 323,000, the lowest level in more than 5 years, beating expectations of 333,000 and remaining below the 350,000 mark that somehow has become the threshold between a good and bad job market. Gold closed Wednesday’s session at $1473.70 but now trades at its low for the day, $1460 (down nearly 1%). The rest of the precious complex is also  in negative territory to start the day as the jobless claims numbers will only lend support to the equity market rally. DJIA closed Wednesday at 15,105! Platinum is barely holding on to the $1500 level after closing yesterday at $1504.90. The white metal reached as high as $1512 overnight but was unable to sustain those levels. 10:00 am will bring about wholesale inventories. Have a great day!

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