Gold News: Unemployment Affecting Its Price? [VIDEO]

Unemployed workers on line at a California unemployment office.

Unemployed workers on line at a California unemployment office — due to an employment freeze (Photo Source: Wikipedia Commons)

Reading the news today might be a downer, if you like happy, rosy pictures. Dominating the headlines is Donald Trump vs Kim Jong Un, who seem caught in a battle of one-upmanship. Korea’s leader saying his country is actively planning to nuke a US territory doesn’t give the market any warm & fuzzy comfort, that’s for sure.

Against that backdrop, this morning’s announcement that the US new unemployment claims number crept up seems insignificant. But let’s not overlook the fact. Gee whiz, 244,000 is almost a quarter million people losing their jobs — doesn’t that seem like a lot? In fact, most outlets are reporting the increase as “within expectations” during a recovery.

Related: The Curious Case of Bull

Your friendly Gold Enthusiast, being a bit older perhaps, remembers when the “recovery number” was 185,000 and the upper range of “acceptable” if all was going well was 225,000. And, if there’s a recovery on, why are MORE people becoming unemployed — isn’t a recovery when there are more jobs around, not less? It just smacks of revisionism for anyone to push the idea that an increasing unemployment number is in any way good. A video is posted below expanding on the issue.

In any case, we’re just not seeing a whole lot of good news around these days, which is bolstering gold prices in the short term at least. Earnings season is going well enough but is also getting drowned out. So is there anything else we should look at?

Related: Are Gold Prices “Under Pressure” For the Short Term?

The technical picture is important now because with gold sentiment very low, a big change in technicals could fuel interest in the yellow metal. If gold closes above 1300 in both London and New York in the next week it will be very significant. Here’s an article that explains the technical picture, which isn’t the be-all end-all for trading gold but it sure gives broad hints.

It sure seems like a great time to look for high-quality, depressed-price gold miners, and build yourself a small stash.

Signed, The Gold Enthusiast

DISCLAIMER: The author has no positions in any mentioned security. The author is long NUGT and JNUG and may add to or sell these positions in the next 48 hours.

Related: Are We Nearing a Crash? Details

About the author

Mike Hammer

Mike Hammer has had a wide-ranging career, with trading and investing as a continuing theme. Mike graduated from UC Berkeley with a business degree, then worked with Macy's in their operations arm. He left Macy's and spent a summer trading his own account, which taught him a lot about trading in general and markets in particular. Trading through the Black Monday and the Crash of 1987 showed him how most people are unprepared for upheavals in their trading. He then joined Waddell & Reed as a financial advisor, helping regular people understand their finances and meet their life goals.

Then came the usual story - Mike met and married the lady of his dreams. They moved to upstate New York, where Mike worked first for a small manufacturing consulting company, then Cornell University. While loving the work and the higher-education atmosphere, Mike missed the world of finance. Eventually, he signed up for stock trading coaching with the Adam Mesh Trading Group, to learn from people who understood modern markets. Within a year, Adam asked Mike to become a stock trading coach.

Since then, Mike has trained over 200 individuals, spoke at several national conventions, and is a frequent contributor to conference calls across the Adam Mesh community. Mike writes The Gold Enthusiast daily newsletter, runs the Golden Hammer trading service, and participates in the Mesh Private Portfolio. He also keeps a position in international education which keep him in touch with "the student mindset". Mike closely follows the gold, energy, and financial sectors. His motto is "Plan your trade, then trade your plan!"

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