Gold Drops On Disappointing Jobs

Gold Drops On Disappointing Jobs

Gold drops this morning on disappointing jobs numbers. The yellow metal began feeling pressure a little earlier in the trading day as the U.S. dollar gathered strength and Treasury bond yields rose.

U.S. private payrolls in February failed to grow per this morning’s ADP report, even as other parts of the economy show encouraging signs. Companies added just 117,000 jobs, far below the forecasted 225,000 number from surveyed economists. Gold lost $15 an ounce on the news, but is holding above the $1,700 level.

April gold futures rose 0.6% Tuesday to settle at $1,733.60 an ounce on Comex. The yellow metal gained 0.3% in the first two days of the week after its worst month since 2016 in February. Gold climbed $372 — or 24% — in 2020 because of uncertainty about the economy and the pandemic. Currently, the April contract is off $21 an ounce to $1,712.00. and the DG spot price is $1,712.50.

U.S. Senate Majority Leader Chuck Schumer, a Democrat, said Tuesday that the body will have the votes to pass U.S. President Joe Biden’s $1.9 trillion stimulus measure, which cleared the House of Representatives last week. Floor action could come as soon as Wednesday. But Minority Leader Mitch McConnell said he hoped that Senate Republicans would unanimously oppose it. The two parties are split equally in the Senate, and Vice President Kamala Harris — a Democrat — would cast the deciding vote in the event of a tie.

The bill is designed as a shot in the arm to an economy still reeling from the pandemic.

The COVID-19 virus has killed almost 2.55 million people worldwide and sickened more than 114.7 million. About 25% of the cases — and 20% of the deaths — are in the U.S. The country has about 28.7 million cases, more than any other nation.

Investors will also be awaiting the key February employment report, due out Friday for a snapshot on the state of the economy.

Meanwhile, Biden promised Tuesday that the U.S. would have enough vaccine for every adult in America by May, signaling that the worst of the pandemic could be winding down.

May silver futures increased 0.8% Tuesday to settle at $26.88 an ounce on Comex. It’s up 1.7% so far this week. The metal decreased 1.8% in February, its first retreat in three months. Silver gained 1.9% in January and 47% in 2020. The May contract is down $.54 an ounce to $26.330 and the DG spot price is $26.17.

Spot platinum advanced 1.6% Tuesday to $1,216.10 an ounce. It’s up 1.8% so far this week in a rebound from last week’s 6.6% tumble. The metal rallied 11% last month amid forecasts for higher demand and tighter supplies. The autocatalyst metal advanced 0.5% in January and 11% in 2020. Currently, DG spot platinum is down $30 an ounce to $1,184.70.

Spot palladium increased 1% Tuesday to $2,390.50 an ounce. It’s up 2.2% so far this week. It gained 4.9% in February after plummeting 9% in January and rallying 26% in 2020. The DG spot price is currently down $16 an ounce to $2,390.50.


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