U.S NF Payroll Grew by 214K in October | Gold & Silver Bounce Back

U.S. employment rose by a lower than anticipated rate with 214K additional jobs, according to the Bureau of Labor Statistics. This figure was below market expectations, which were at 229K and the ADP report showed that private non-farm payroll rose by 230K during October. According to the latest U.S. employment report, the main sectors that grew in food services and drinking places, retail trade, and health care. The rate of unemployment inched down to 5.8%. Gold and silver bounce back.

The chart below presents the revised figures of the added number of non-farm employees in the labor market in past years (up to October 2014). The non-farm payroll in September and August were slightly revised up by a total of 31K than previously estimated. This revision comes after the September report was very impressive with 148K jobs added.

U.S. Nonfarm payroll employment up to 2014  Novermber 7In October, the rate of U.S. unemployment slipped by 0.1 percentage points to 5.8%. The current unemployment rate is 1.5 percent points lower than its rate in October 2013.

Moreover, the number of unemployed persons (8.995 million) fell by 267K in October compared to the previous month. A closer look reveals that the civilian labor force rose by 416K. So the drop in number of unemployed and the gain in the number of people participating in the labor force resulted in the participation rate inching up to 62.8%.

Following this news, the U.S dollar fell down against the Euro and Yen; crude oil price is currently rising by over $1.15; the U.S stock market indexes are slightly recovering; gold and silver prices are sharply rising. Since the labor report was positive but came short of expectations, the market has reacted with a sharp rally in gold and silver and fall of the USD.

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