globalist news – so you know what's coming: gold movement market update

This is an update on my last post:

Looming Financial Crisis? - 06.24.2014
http://globalistnews.blogspot.com/2014/06/looming-financial-crisis-06242014.html

Were we not told the market would tank on july 1st?
Looks like its not so far...

Don't get me wrong, there's plenty of time for the market to take a serious dump all over us, I'm just sayin', predictions are funny like that.

Yesterday...
Dow Jones rises to highest point EVER: Market floats to 16,998 on strength of Chinese and American manufacturing

Highest ever: The Dow Jones industrial average reached it's highest point ever on Tuesday afternoon--16,998.70

Highest ever: The Dow Jones industrial average reached it's highest point ever on Tuesday afternoon--16,998.70

Chinese manufacturing has expanded for the first time in six months
The American manufacturing sector has had its 13 straight month of growth
Even beleaguered General Motors had a sales increase of 1 percent despite months of historically huge recalls

By Associated Press

Published: 16:02 EST, 1 July 2014 | Updated: 19:10 EST, 1 July 2014

more here:
http://www.dailymail.co.uk/news/article-2676617/Stocks-rise-surveys-stronger-manufacturing.html

Today:

Dow hits 17,000 for first time on payrolls report
Kate Gibson | @CNBCKateGibson
13 Mins Ago

U.S. stocks rose on Thursday, lifting the Dow industrials above 17,000, after the government reported the economy created a better-than-expected 288,000 jobs in June and the unemployment rate fell to 6.1 percent.

video and more here:
http://www.cnbc.com/id/101810923

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7/03/2014 @ 8:39AM 3,551 views
Jobs Report: U.S. Economy Added 288K Jobs In June, Unemployment Dropped To 6.1%

The Bureau of Labor Statistics released a surprisingly strong jobs report Thursday morning.

Employers added 288,000 jobs in June, significantly more than the 215,000 economists were anticipating. The unemployment rate, which is drawn from a different survey of households, dropped from 6.3% to 6.1% the lowest rate since September 2008.

Immediately following the news the S&P 500, The Dow Jones Industrial Average and Nasdaq Composite were in the green, continuing positive trends seen leading up to the pre-bell release. The Dow crossed 17,000 for the first time ever seconds after the opening bell before settling around 17,050.

The May payroll number was revised up from plus 217,000 jobs to plus 224,000. April’s employment number was also revised from 282,000 jobs added to 304,000. Total employment gains those months were therefore 29,000 higher than BLS — a division of the Department of Labor — previously reported. Job growth averaged 272,000 for the last three months.

“This was a strong report any way you slice it,” wrote RBS U.S. Economist Omair Sharif in a note on the news. Sharif pointed out that the unemployment rate is “where the Fed thought we would be at year-end, and it’s only June.”

In a call following the results Mike Schenk, vice president of economics and statistics at the Credit Union National Association, said the strong headline numbers show a “bounce back effect.” Adding, “The first quarter numbers were not all that encouraging, especially in terms of the economic growth numbers. People seemed to be sitting on the sideline in terms of purchasing behavior. Clearly the consumer is back in the market place.”

Schenk also noted that CUNA’s monthly survey of credit unions showed the organizations loan portfolios increasing by 1.2% last month, the strongest growth since August 2005. “Consumers are engaged. They are not only buying more, but buying big ticket items so a lot of that pent up demand is being expressed.”

more here:
http://www.forbes.com/sites/samanthasharf/2014/07/03/jobs-report-u-s-economy-added-288k-jobs-in-june-unemployment-dropped-to-6-1/

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Gold Prices Drop Most Since May as U.S. Adds More Jobs
By Debarati Roy July 03, 2014

Gold futures fell the most in five weeks after the U.S. added more jobs last month than forecast, curbing demand for a haven asset.

The addition of 288,000 jobs followed a 224,000 gain in the prior month, Labor Department figures showed today. The median forecast in a Bloomberg survey of economists called for a 215,000 advance. U.S. equities climbed to a record.

Gold through yesterday advanced 11 percent this year as the Federal Reserve said it will keep interest rates low for a considerable time after ending bond purchases, while unrest in Iraq and Ukraine spurred demand for a haven. The metal plunged 28 percent in 2013, the most in three decades, as the U.S. economy gained traction.

“The job numbers are telling us that the economy is healthy, and people don’t need a lot of safe haven going forward,” Alfonso Esparza, a senior currency analyst in Toronto at Oanda Corp., said in a telephone interview. “Gold will probably now start weakening again.”

On the Comex in New York, gold futures for August delivery fell 0.9 percent to $1,319.30 an ounce at 10:04 a.m. A close at that price would mark the biggest drop for a most-active contract since May 27. On July 1, the metal reached $1,334.90, the highest since March 24.

Trading was 21 percent more that the average for the past 100 days for this time, data compiled by Bloomberg show.

more here:
http://www.businessweek.com/news/2014-07-02/gold-trades-below-three-month-high-before-u-dot-s-dot-payrolls-report

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UPDATE 1-UK watchdog says no evidence that gold price is rigged
Wed Jul 2, 2014 12:10pm EDT

* FCA says work on probing FX markets continuing

* FCA to check on lawmaker concerns over share prices (Adds more comment, background)

By Huw Jones

LONDON, July 2 (Reuters) - Collusion among banks in setting the gold price benchmark was possible but there is no evidence of this, a senior British regulator said on Wednesday when answering lawmakers' questions on the trustworthiness of the gold market.

Gold prices and other benchmarks have come under scrutiny, with banks fined $6 billion for rigging the Libor interest rate, used to price a range of financial products. Allegations are also emerging of potential rigging of currency markets.

Four banks -- the Bank of Nova Scotia, Barclays , HSBC, and Societe Generale -- talk twice a day to each other on the telephone to "fix" the gold price that is used as a benchmark across the world.

Parliament's Treasury Select Committee asked David Bailey, head of markets infrastructure and policy at the Financial Conduct Authority, if there was collusion in setting gold prices.

"It is possible but I have no clear evidence that that has actually happened," Bailey said.

The FCA is one of several regulators from across the world which have fined 10 banks and brokerages for rigging Libor. It is also probing the $5.3 trillion a day foreign exchange market for possible manipulation and Bailey said "we continue to progress our work".

more here:
http://www.reuters.com/article/2014/07/02/britain-fca-benchmarks-idUSL6N0PD43820140702

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June Full-Time Jobs Plunge By Over Half A Million, Part-Time Jobs Surge By 800K, Most Since 1993
Submitted by Tyler Durden on 07/03/2014 09:29 -0400

Is this the reason for the blowout, on the surface, payroll number? In June the BLS reports that the number of full-time jobs tumbled by 523K to 118.2 million while part-time jobs soared by 799K to over 28 million!

larger: http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/07/Full%20Part%20Time%20June.jpg

Looking at the breakdown of full and part-time jobs so far in 2014, we find that 926K full-time jobs were added to the US economy. The offset: 646K part-time jobs.

larger: http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/07/Full%20Time%20LTM.jpg

Something tells us that the fact that the BLS just reported June part-time jobs rose by just shy of 800,000 the biggest monthly jump since 1993, will hardly get much airplay today. Because remember: when it comes to jobs, it is only the quantity that matters, never the quality.

larger: http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/07/part-time%20jobs%20since%201993.jpg

... just in case there is any confusion why there is zero real wage growth (for two months in a row now), and why it will take a few more months before experts start tossing the word stagflation a little more casually.