Gold rebounds back to $1,800 early Friday, pushing above that psychological line on disappointing U.S. payroll numbers that dinged the U.S. Dollar index.
U.S. Jobs grew slightly in January, with nonfarm payrolls increasing by 49,000, while the unemployment rate fell to 6.3%. However, economists canvassed by Dow Jones had predicted at least 50,000, while many Wall Street analysts had looked for higher numbers with Citigroup projecting a gain of 250,000.
The yellow metal had dropped to its lowest price in more than two months on Thursday while the dollar climbed to it its highest level in more than two months. Additionally, Treasury yields increased amid anticipation of passage of a U.S. stimulus bill. U.S. initial jobless claims also declined last week, indicating that the labor market may be stabilizing.
April gold futures dropped 2.4% Thursday to $1,791.20 an ounce on Comex. Front-month futures lost 3.2% in the first four days of this week. They declined 2.4% in January. Gold climbed $372 — or 24% — in 2020 because of uncertainty about the economy and the coronavirus pandemic. Currently, the April contract is up over $9 an ounce to $1,800.90 and the DG spot price is $1,800.40.
Silver also tumbled Thursday, as volumes returned to near-normal levels after surging on speculation at the end of last week and first part of this week.
Front-month silver futures fell 2.4% Thursday to $26.23 an ounce on Comex. March futures dropped 2.5% in the first four days of this week. The contract rallied 16% between Jan. 28 and Feb. 1, reaching an eight-year high on Monday. The contract increased 1.9% in January and 47% in 2020. The March contract is up over $.040 an ounce to $26.670 and the DG spot price is $26.68.
Democrats in Congress are moving to fast-track U.S. President Joe Biden’s $1.9 trillion pandemic stimulus bill as GOP lawmakers pushed back. Meanwhile, investors pared back expectation of an interest rate cut in the U.K. after the Bank of England held interest rates at 0.1%. While the central bank told British banks to take whatever steps might be necessary fro negative interest rates, the BoE said it wasn’t trying to signal that such a move was imminent.
U.S. weekly initial jobless claims fell more than economists expected in data released Thursday, dropping to 779,000 last week, compared with an expected 830,000. Figures remained at historically elevated levels because of the pandemic. Meanwhile, data on U.S. productivity for the fourth quarter posted its biggest drop since 1981 as the pandemic weighed on industries like leisure and hospitality.
The COVID-19 virus has killed more than 2.28 million people worldwide and sickened almost 105 million. About 25% of the cases — and 20% of the deaths — are in the U.S. The country has almost 26.7 million cases, more than any other nation.
Spot palladium increased 0.3% Thursday to $2,308.00 an ounce and is up 3.5% so far this week. It plummeted 9% in January after rallying 26% in 2020. Currently, the DG spot price is up over $50 an ounce to $2,361.50.
Spot platinum decreased 0.7% Thursday to $1,104.10 an ounce, though it gained 2.3% in the first four days of this week. It rose 0.5% in January and 11% in 2020. The DG spot price is currently up over $30 an ounce to $1,131.40.
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