The Dow Jones is up 260 points and is trading decisively above its 200 day moving average for the first time since October 10th. This, combined with a stronger USD, has gold and silver on the defensive today and off their recent highs. Gold faked out day traders by closing above its 50 day moving average and the double top of resistance at $1,250 two days ago. Normally a technical buy signal, gold instead is trading lower for the second day in a row with the steady pressure from equities and the USD. Renewed confidence in stocks has resulted in 29,000 ounces of global ETF liquidation, bringing total holdings to lows (53.303 million ounces) not seen since 2009.
US Jobless Claims data today showed that fewer Americans filed for unemployment benefits over the past month than at any time in the last 14 years. The four week average of jobless claims dropped to 281,000, the lowest since May of 2000. Even with prospects of slower economic growth ahead, sustained demand of goods and services has prompted companies to retain workers.