Gold jumps on jobs numbers

Gold jumps on jobs numbers

Gold jumps up on slowing jobs numbers that are strengthening expectations that the Fed will cut rates in September. The yellow metal hitting its highest level in a month on the news.

This morning’s data showed U.S. non-farm payrolls grew by 206,000 jobs in June, slightly higher than the 190,000 new jobs estimated by economists. But the estimated job growth for May was revised down to 218,000 new jobs from 272,000 and April’s job growth was revised down to 108,000 new jobs from a previous 165,000. The unemployment rate rose to 4.1%, slightly higher than the estimated 4.0%. Spot gold was up 0.7% at $2,371.58 per ounce on the news with bullion up nearly 2% for the week so far, while the dollar slipped to a three-week low making gold less expensive for other currency holders.

August gold futures rose on Wednesday to settle at $2369.40 an ounce on Comex. Gold trading is somewhat light this week due to the Independence Day holiday. Bullion fell 0.3% last month after gaining 1.9% in May and 2.9% in April. The metal rose 13% in 2023. The August contract is currently up $15.10 (+0.64%) an ounce to $2384.50 and the DG spot price is $2378.60.

The Fed has kept interest rates steady at 5.25% to 5.50% for about a year after raising them by 5.25 percentage points since March 2022 to rein in inflation. Interest rates affect gold prices because they influence the attractiveness of the yellow metal in respect to other assets.

The CME FedWatch Tool shows 95.3% of the investors tracked are betting that the Fed will keep rates unchanged this month. While, almost 75% expect the central bank to start cutting in September. The Fed kept interest rates unchanged again in June.

September silver futures rose 2.9% Tuesday to settle at $30.842 an ounce on Comex. Silver fell 2.9% last month after surging 14% in May and rising 7% in April. It ticked up 0.2% in 2023. The September contract is currently up $0.248 (+0.80%) an ounce to $31.090 and the DG spot price is $30.90.

Spot palladium rose 3.8% Wednesday to $1035.30 an ounce. Palladium rallied 8.1% last month after declining 5.1% in May and losing 5.9% in April. Palladium plummeted 38% last year. Currently, the DG spot price is down $8.30 an ounce to $1032.00.

Spot platinum rallied Wednesday to $1006.5 an ounce. Platinum fell 3.7% last month after advancing 10% in May and 3.1% in April. Platinum dropped 6.8% in 2023. The DG spot price is currently up $27.80 an ounce to $1033.20.

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