Ahead of the widely-anticipated employment report, gold traded near unchanged at $1,530 per ounce, down $3.50 versus Thursday’s closing level. Silver followed gold, falling 1.5% to$35.65 per ounce. Currency markets were quiet with the euro trading marginally stronger against the U.S. dollar at 1.45.
According to a Bloomberg survey of economists, market expectations are for a gain of 165,000 non-farm payrolls. Analysts rushed to lower their estimates following Wednesday’s May jobs data from ADP Employer Services, which showed a gain of only 38,000 jobs.
The labor and housing markets continue to hold the key to the future direction of monetary policy. Chairman Bernanke appears committed to a zero interest rate policy as long as the housing market is under duress and the unemployment rate is in the vicinity of 10%.
S&P 500 stock futures fell 3.60 to 1,308.80 ahead of the employment report, scheduled to be announced at 8:30am eastern time this morning.
Fortuna Silver’s Cash Flows Rise 41%
Fortuna Silver (FVI.TSX) announced financial and operating results for the first quarter of 2011. Highlights of the Canadian-based silver miner’s results included $7.72 million in cash flow from operations, a 40.6% increase over the prior year period. Fortuna also reported that the San Jose Mine, currently under construction, will begin to contribute to silver and gold ounces in the third quarter of 2011. Full Fortuna Silver Press Release
FORTUNA SILVER VS. S&P 500, XAU
FORTUNA SILVER GROWTH
