Gold climbs on disappointingly down jobs report. The yellow metal had already been hanging to the positive side of a narrow range ahead of the release of the key U.S. monthly jobs report for September.
Nonfarm payrolls increased by 194,000 in September, compared to the Dow Jones estimate for 500,000. While, the unemployment rate dropped to 4.8%, better than the expected 5.1%.
The jobs reports are key indicators of the state of the economy as rising inflation has pressured central bankers globally to remove stimulus measures and boost low interest rates. Investors now await any comments from the Fed as today’s jobs report falls short of what Chairman Jerome Powell called “decent” last month. The Chair had indicated continued jobs growth would likely spark policymakers to begin tapering as soon as November.
Thursday, the Labor Department reported initial jobless claims for last week declined more than expected — to 326,000, below estimates for 345,000. The ADP employment report for September — which came out Wednesday — also beat expectations, showing private jobs grew at a faster-than-anticipated pace last month.
December gold futures slid 0.2% Thursday to settle at $1,759.20 an ounce on Comex. The front-month contract increased just 80 cents in the first four days of the week. Gold retreated 3.4% in September after gaining just 90 cents in August. It dropped $14.60 in the third quarter. The yellow metal is down 7.2% so far in 2021. The December contract is up $15.70 (+0.89%) to $1,774.90 and the DG spot price is $1,772.30.
In other news, the U.S. Senate approved a bill to raise the debt ceiling, preventing an imminent default for at least two months and improving broader-market sentiment. The 10-year Treasury yield reached the highest level since June, making gold lose some of its luster as an alternate investment.
Meanwhile, Pfizer and BioNTech asked the U.S. Food and Drug Administration on Thursday to authorize its COVID-19 vaccine for use in children ages 5 to 11. If approved, the move could help bring the pandemic closer to an end. The removal of pandemic uncertainty would be bearish for gold.
December silver futures increased 0.6% Thursday to settle at $22.66 an ounce on Comex. The front-month contract gained 0.5% in the first four days of the week. Silver retreated 8.2% in September, its fourth consecutive monthly decline, and plummeted 16% in the third quarter. The metal is down 14% so far this year. Silver prices are tied to industrial demand. The December contract is currently up $0.457 (+2.02%) an ounce to $23.115 and the DG spot price is $23.09.
Spot platinum rose 0.1% Thursday to $992.00 an ounce and is up 0.9% so far this week. The metal lost 5.3% last month and 10% last quarter. It’s down 7.6% so far this year. Currently the DG spot price is up $38.70 an ounce to $1,031.90.
Spot palladium increased 4.7% Thursday to $1,986.00 an ounce and is up 2.3% so far this week. It lost 23% in September, 31% in the third quarter and is down 19% so far in 2021. The DG spot price boosted back over $2,000 an ounce after this morning jobs report. Currently, it is up $84.50 an ounce to $2,069.50.
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