TSX Venture Exchange and Gold
The Venture opened lower Friday as Gold plunged on a better-than-expected U.S. jobs report, but the inherent strength of the Venture was again evident by the end of the day as the Index finished the session with a loss of just under 1 point despite Gold’s $25 drop and a 3.2% decline in Silver. For the week, the Venture added another 11 points to finish at 807, its first weekly close above 800 since October 2014.
The S&P 500 and NASDAQ both hit new record highs Friday as traders found encouragement in a seemingly robust U.S. jobs report for July (255,000 new jobs added). The report, however is at odds with other data points, particularly the most recent U.S. GDP growth number, while goods producing sectors continue to struggle in terms of generating employment. If this was such a hot economy, as the apparent jobs growth 3 months ahead of November’s elections would suggest, why would the Fed still be trembling at the prospect of raising interest rates a mere 1/4 percent?
Friday’s weakness in both Gold and Silver was a knee-jerk reaction to the jobs report but the Venture’s behavior tells us to “buy the dip” – find out why in today’s Week In Review And A Look Ahead…
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