This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Non-Farm Payroll May Cool Down the Gold and Silver Market

NEW YORK (TheStreet) -- The gold and silver market didn't do well in the past couple of weeks. These metals' weakness also adversely impacted leading precious metals exchange-traded funds including SPDR Gold Trust (GLD), iShares Gold Trust (IAU) and iShares Silver Trust (SLV).

Shares of SPDR Gold Trust lost 2.5% of their value during July and reached $124.83; iShares Gold also fell by a similar rate and settled at $12.57 per share; iShares Silver Trust slipped by 47 cents during the month to $19.78. But the upcoming non-farm payroll could drag further down bullion prices. Let's see why and start with the recent U.S. second-quarter GDP news.

The U.S. economy expanded by 4% during the second quarter, according to the latest update from the Bureau of Economic Analysis. This news may have contributed to the recent decline of gold and silver, which are considered safe haven investments when the economy isn't picking up. The recovery of the U.S. economy is impressive considering the GDP contracted by 2.1% in the first quarter.

READ MORE: Warren Buffett's 25 Favorite Stocks

Another factor that could impact the direction of gold and silver is the upcoming release of the non-farm payroll, which estimates the progress of the U.S. labor market. In the past several months, the U.S. labor market added over 200 thousand jobs on a monthly basis. For

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $132.54 0.00%
FB $80.54 0.00%
GOOG $540.11 0.00%
TSLA $247.73 0.00%
YHOO $43.48 0.00%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs