Gold Steady After Jobs Report

Gold Steady After Jobs Report

Gold rose early Friday, and then held steady after jobs report showed a slowdown. The yellow metal is heading for its first weekly gain in four, after the dollar weakened on rising hopes that a U.S. economic stimulus package is more likely.

In November, Nonfarm payrolls increased by just 245,000, that’s far below Wall Street’s projected 440,000 number, showing a considerable slowdown in hiring. The unemployment rate met expectations, decreasing to 6.7% from 6.9% in October. Yesterday, weekly initial jobless claims for last week hit the lowest level since pandemic-related lockdowns began in March.

Front-month gold futures rose 0.6% Thursday to settle at $1,841.10 an ounce on Comex. The yellow metal has rebounded since closing at the lowest level since July 1 on Monday. The February contract advanced 3% in the first four days of the week. Currently, the February contract is up $7.80 an ounce to $1,848.90, while the DG spot price is $1,846.00.

The yellow metal got a boost after the dollar headed for its worst week since early November. Declines in the U.S. currency typically are bullish for gold, which is priced in dollars.

House Speaker Nancy Pelosi and Senate Majority Leader Mitch McConnell indicated Thursday that they’re in the first serious bipartisan negotiations in months over a stimulus package. Congressional Democrats and the Trump administration have been in a stalemate over a bill for months. Pandemic-related lockdowns have sent millions of Americans into unemployment and curbed economic growth.

Gold is up more than $300 — or 21% — so far this year as investors have flocked to the metal because of uncertainty from the coronavirus pandemic and the economy.

That uncertainty grew Thursday after Pfizer it only expects to ship half the doses it had originally planned of its new COVID-19 vaccine because components in the supply chain didn’t meet its standards. The first shipments of Pfizer’s coronavirus vaccine are expected to be delivered Dec. 15, CNN reported earlier this week.

The COVID-19 virus has killed 1.51 million people worldwide and sickened 65.2 million. About 22% of the cases — and 18% of the deaths — are in the U.S. The country has 14.1 million cases, more than any other nation.

Front-month silver futures rose 0.2% Thursday to settle at $24.14 an ounce on Comex. The March rallied 6.6% so far this week. The most active contract dropped 4.5% in November. The March contract is currently up $0.163 an ounce to $24.300, while the DG spot price is $24.27 an ounce.

Spot palladium, which has gained renewed interest in recent days as a key component required for many of the world’s clean-energy plans, advanced 8.3% in November. Spot platinum has risen 14% in November. Currently, the DG spot price for palladium is up $61.80 t0 $2,398.50, while platinum is up $49.40 an ounce to $1,082.00


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