Gold Inches Up on Jobs Data

Gold Inches Up on Jobs Data

Gold inches up on jobs data this morning, but still fighting beneath $1,700 amid other bullish economic news and increasing U.S. Treasury yields.

The yellow metal bumped up about .15% on this morning’s ADP report that shows private payrolls rose by 517,000 in March, the fastest pace since September. However, that number failed to meet the Dow Jones projected 525,000 new jobs. It was well above February’s anemic 176,000.

Chinese factory orders for March beat economists’ expectations, and U.S. consumer confidence for the month climbed to its highest level since the COVID-19 pandemic began. The positive signs of global economic improvement made the yellow metal less attractive to investors looking to hedge against uncertainty.

Ten-year U.S. Treasury yields added to previous advances, further pressuring gold. Strength in Treasury yields raises the opportunity cost of holding bullion.

Front-month gold futures fell 1.7% Tuesday to settle at $1,686.00 an ounce on Comex. The June contract has dropped 2.8% in the first two days of the week. Gold is down 2.5% so far this month after posting its worst month since 2016 in February. Gold climbed $372 — or 24% — in 2020 because of uncertainty about the economy and the pandemic. The June contract is currently up $10.50 to $1,696.50 and the DG spot price is currently $1,696.80.

Precious metals trading on Comex will be closed at the end of the week for Good Friday. (The Market Gage will not be sent on Friday, as well)

The International Monetary Fund is growing more optimistic about global growth this year, Managing Director Kristalina Georgieva said in a speech Tuesday. “We now expect a further acceleration; partly because of additional policy support — including the new fiscal package in the United States; and partly because of the expected vaccine-powered recovery in many advanced economies later this year.”

Investors will closely follow the release of U.S. President Joe Biden’s proposed infrastructure package Wednesday. The initiative will include $2.25 trillion in direct spending, with an additional $400 billion in clean energy tax credits, CNN reported, citing an unidentified person with knowledge of the matter.

In upcoming economic news, investors will also be watching the key first-of-the-month manufacturing reports from the U.S. and other economies on Thursday as well as the influential monthly U.S. unemployment report for March, which is due out Friday. The reports will give a better indication of the global economic outlook as the world enters the second year of the pandemic.

The COVID-19 virus has killed more than 2.8 million people worldwide and sickened almost 128.1 million. About 24% of the cases — and 20% of the deaths — are in the U.S. The country has almost 30.4 million cases, more than any other nation.

May silver futures decreased 2.6% Tuesday to settle at $24.14 an ounce on Comex. The contract slid 3.9% in the first two days of this week. Silver is down 8.7% so far this month after decreasing 1.8% in February, its first retreat in three months. It gained 1.9% in January and 47% in 2020. The May contract is currently up $0.003 to $24.140 and the DG spot price is $24.20.

Spot platinum retreated 2% Tuesday to $1,164.40 an ounce. It’s down 1.7% so far this week. The metal has lost 2.6% in March after rallying 11% in February amid forecasts for higher demand and tighter supplies. The autocatalyst metal rose 0.5% in January and 11% in 2020. Currently, the DG spot price is up $26.30 to $1,188.90.

Spot palladium gained 1.4% Tuesday to $2,594.00 an ounce, though it’s down 3.4% for the week. Palladium has risen 11% in March. The metal gained 4.9% in February, plummeted 9% in January and rallied 26% in 2020. The DG spot price is currently up $48.00 to $2,642.00.


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