Diamonds and Dogs
A good day for gold. Kinross Gold (KGC) jumped 14.78% to $4.97 a share following a rise of 2.51% in the price of gold to $1,243 per ounce on the August contract. The latest jobs report sent gold prices skyrocketing as the U.S. added fewer than expected positions last month, just 38,000 new jobs verse estimates of 158,000.The disappointing data decreased the likelihood of the Fed raising interest rates next month as the central bank has said in the past it will only do so if it feels the economy can sustain a hike. Good news for gold, I guess.
Bad news for banks. Charles Schwab, an interest rate sensitive bank, dropped 5.3% on Friday from recent highs after the Labor Department reported just 38,000 new jobs in the month of May, the lowest amount in five years. The financial sector in general slumped 5.1% on Friday in a microcosm of the year, just when you think the markets and financials are ready to resume a bull market, the rug gets pulled from underneath them.