In Spite Of A Better Non-Farm Employment Report, Gold Price Rises

Gold and silver prices are rising in early U.S. trading Friday, following a U.S. employment report which saw the key non-farm payroll component beat market expectations for the first time in years. It is likely that some safe-haven demand for gold will surface, as it heads into the weekend, and amid concerns about the health of a major California bank. The price of April gold was last up $9.00 at $1,843.50 while the price of May silver was last up $0.175 at $20.326.

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There was a 311,000 gain in non-farm payrolls in February, according to the just-released U.S. Labor Department employment situation report that was released just a few days ago. It was expected that the number would show an increase of 225,000 jobs, following a tremendous rise of 517,000 jobs in the January report. A great deal of the market believes that the wage component of the U.S. jobs report was tamer than expected, which has moderated the higher-than-expected rise in non-farm payrolls, according to the report.

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As we approach the end of the trading week, there is a keener sense of risk aversion in the marketplace, which may in turn lead to some safe-haven demand for gold and silver as a result. There was a general decline in global stock markets over the past 24 hours. The U.S. stock market is expected to open mixed to weaker in the morning session in New York when it begins.

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There has been a great deal of buzz all week about the U.S. jobs report due out Friday morning being the main focus of the week. The marketplace is experiencing some anxiety right now due to the fact that a major U.S. financial institution is facing big problems. After an emergency $2.25 billion capital increase was carried out to cover $1.8 billion in losses on the company's $21 billion bond portfolio, SVB Financial, the holding company for Silicon Valley Bank, dropped 60% in stock value. The company is the 16th largest U.S. commercial bank by assets. Cryptocurrencies are also a big part of the bank's business, which has put cryptos under pressure late this week as a result of its involvement. 

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The Silicon Valley Bank collapse in California lends weight to a risk-off strategy, said broker SP Angel in an email dispatch. "Markets are vulnerable to further shocks as the collapse lends weight to a risk-off strategy." Whenever one has been swimming naked, you find out who is still naked. Whenever an institution holds treasuries, it is sitting on paper losses that must be crystallized if the institution is required to sell them. JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo, the four largest U.S. banks based on assets, all fell between 4.1% and 6.2% in terms of their shares.

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