Why Gold Prices Ignored the U.S. Jobs Report

By Doug Ehrman – May 6, 2013 at 2:17PM

NYSEMKT: GLD

SPDR Gold Trust

Market Cap

Today's Change

(-0.19%) -$0.40

Current Price

$214.64

Price as of April 24, 2024, 4:00 p.m. ET

The U.S. Jobs report showed a measure of strength that might have weighed on gold prices, yet did not. This and other events are making for an interesting situation in the gold markets.

Last week saw gold prices show strength in the face of several global macroeconomic events that would otherwise have been viewed as bearish. With the U.S. Jobs report providing further evidence that the labor market may not be quite as bad as feared, the SPDR Gold Trust (GLD -0.19%) continued to show strength. Still, both the Federal Reserve and the ECB have continued down the path of quantitative easing. The actions of these central banks are some of the reasons you saw gold miners like Goldcorp (GG) and Gold Fields (GFI 0.41%) report so weakly – Goldcorp also missed earnings expectations and Gold Fields was downgraded by UBS (UBS -3.63%).

In the video below, Fool.com contributor Doug Ehrman discusses some of the key global macroeconomic events driving gold and how they may play out over the coming weeks and months.

Motley Fool contributor Doug Ehrman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.