Gold reclaims some ground on jobs report

Gold reclaims some ground on jobs report

Gold reclaims some ground on this morning’s jobs report which came in lower than expected. Spot gold gained $10 an ounce on the news, but the yellow metal still looks headed for its worst week in six.

July’s job growth missed expectations, indicating slower U.S. economic growth. Per the Labor Department, nonfarm payrolls grew by 187,000 for the month, below the Dow Jones 200,000 job forecast. This gives support to the Fed doves.

Front-month gold futures fell 0.3% Thursday to settle at $1,968.80 an ounce on Comex, as the December contract dropped 1.6% in the first four days of the week. Bullion rose 4.1% in July after losing 2.7% in June and retreating 0.9% in May. The metal gained 5.7% in the first half of the year after falling $2.40 in 2022. The December contract is currently up $9.90 (+0.50%) an ounce to $1978.70 and the DG spot price is $1946.80.

Previous jobs reports out this week indicated that the labor market remains strong.

U.S. weekly initial jobless claims for last week held near the lowest level this year in data released Thursday. New applications for unemployment benefits rose by just 6,000 last week to 227,000, according to data from the Labor Department.

Private payrolls added 324,000 jobs last month, according to the ADP employment report for July, which came out Wednesday. The figure was well above economists’ estimates. 

But about 84.5% of investors tracked by the CME FedWatch Tool are betting that the Fed will keep its federal funds rate unchanged in September at 5.25% to 5.50%. Just 15.5% expect it to raise rates another 25 basis points. Most investors tracked by the tool are betting that it will then hold at that rate at the remaining meetings this year. 

September silver futures lost 0.7% Thursday to settle at $23.70 an ounce on Comex. The most-active contract decreased 3.3% in the first four days of the week. Silver gained 8.5% in July after dropping 2.4% in June and decreasing 6.5% in May. It retreated 4.2% in the first half of the year after rising 3% in 2022. The September contract is currently up $0.053 (+0.22%) an ounce to $23.750 and the DG spot price is $23.77.

Spot palladium rose 1.3% Thursday to $1,275.50 an ounce and is up 0.9% so far this week. Palladium rose 3.6% in July after falling 9.5% in June and tumbling 9.3% in May. Palladium plummeted 31% in the first half of the year after losing 5.7% in 2022. Currently, the DG spot price is down $6.40 an ounce to $1271.00

Spot platinum slid 1% Thursday to $922.50 an ounce and has retreated 2.1% so far this week. Platinum gained 5.2% in July after falling 9.3% in June and retreating 7.4% in May. Platinum dropped 15% in the first half of the year after surging 10% in 2022. The DG spot price is currently down a touch, $0.20 an ounce to $923.60.

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