Gold sticking above $1,800, back above that line after some early Wednesday profit taking following a two-day rally. The yellow metal is entrenched in this range, supported by a weaker dollar, as investors await Federal Reserve moves on monetary policy.
This morning’s surprising drop in U.S. jobs has had little effect on gold so far. Private payrolls Reuters on Tuesday, though he said he favors an increase in March and probably again in May.
Investors are awaiting further key jobs reports in the latter half of this week for the latest indicators on the state of the economy including the U.S. weekly initial jobless claims Thursday and the monthly employment report Friday.
Tuesday, the Institute of Supply Management’s closely watched manufacturing index fell to a 14-month low for January as omicron cases and labor and supply shortages crimped production.
The U.S. government’s personal consumption expenditure price index, the Fed’s favored inflation measure, rose 4.9% in December, compared with a year earlier, the fastest gain since September 1983.
Gold prices also continued to be supported by tensions between Russia and Ukraine and Western powers and the track of the omicron variant of the coronavirus.
March silver futures increased 0.9% Tuesday to $22.60 an ounce on Comex. The front-month contract advanced 1.3% in the first two days of this week. Silver dropped 4.1% in January after gaining 2.4% in December. It fell 12% in 2021. Silver prices are tied to industrial demand. The March contract is currently up $0.055 (+0.24%) an ounce to $22.650 and the DG spot price is $22.74.
Spot palladium fell 0.3% Tuesday $2,371.00 an ounce and is down 1% so far this week. Palladium jumped 24% last month after rallying 9.6% in December. It fell 22% in 2021. Palladium’s main use is in catalytic converters for gasoline-powered vehicles. The DG spot price is currently up $59.00 an ounce to $2,425.50.
Spot platinum increased 0.2% Tuesday to $1,031.00 an ounce. It’s up 1.7% so far this week. The metal rose 5.7% in January after gaining 2.9% in December. It lost 9.4% last year. Currently, the DG spot price is up $19.40 an ounce to $1,049.60.
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