The Bureau of Labor Statistics reported today that nonfarm payrolls grew 271,000 for the month, and the headline unemployment rate declined to 5%. Economists polled by Reuters expected the nonfarm payrolls report to show 180,000 new jobs added in October, with the unemployment rate to hold steady at 5.1%

The U.S. dollar gained 1.4% against the euro as currency traders began pricing in higher rates.

So what has happened to gold and silver prices?

We predicted some time ago that once October was out of the way, we would see gold and silver continue its decline, though we were a little more supportive of gold than silver because of the number of black swans swimming around. Well this is exactly what has happened and further, there now becomes a real possibility that rates may rise in December. Whether they do or they do not, the impression the markets will have is that they will, and as a result, the dollar has strengthened and may continue to do so, again as we forecast. The result is not good for either gold or silver at this stage, though it could be argued that if the economy is genuinely improving, then silver will become a little more robust.

We still see gold falling below the $1080 level and move closer to the $1000 and silver; having already broken below $15 will certainly test the early $14 level, in our view, and could quite possibly move into $13 territory very soon. Next week will give us all an indication as to how the markets have digested this news and as further economic statistics are revealed in the remaining weeks of this year, a very firm trend for 2016 will become established.