Gold sticks near new high, fighting off pressure from positive jobs report. The yellow metal surged to new heights overnight, nearing $2,100 an ounce as tensions between the U.S. and China mounted and U.S. lawmakers failed to reach an agreement on an economic-relief measure as the pandemic and economic crisis worsened.
Gold appeared poised for its best weekly rally since 2006 — and its ninth in a row — while silver futures headed for their biggest weekly jump since 1980. Both gold and silver broke out overnight with gold hitting $2,078.00 for the October Comex contracts, while silver rose to an over seven-year high of $29.915 for the Comex September futures. In addition to be challenged by this morning’s jobs report, both metals lost a little altitude on profit taking.
Two months of payroll growth slipped in July, while still beating economist’s forecasts. Nonfarm payrolls increased by 1.763 million in July and the unemployment rate fell to 10.2%. Both numbers were better than Wall Street forecasts of 1.48 million and 10.6%, respectively.
Gold futures climbed 1% Thursday to settle at $2,069.40 an ounce on Comex. The December contract advanced 4.2% in the first four days of this week after futures surged 10% in July. Currently, the December contract is down to $2,062.20, while the DG spot price is down to $2,049.30.
Silver futures rose 5.6% Thursday to settle at $28.40 an ounce on Comex. The September contract gained 17% in the first four days of the week after soaring 30% in July. Currently, the September contract is $28.40, while the DG spot price is down to $27.95.
The Trump administration late Thursday announced sweeping restrictions on WeChat and TikTok, two popular Chinese social media networks, in an escalation of the standoff between the two superpowers. A trade war between the two nations in 2019 sent precious metal prices skyrocketing.
White House officials and Democratic lawmakers failed to reach an agreement on a coronavirus relief deal late Thursday as federal unemployment benefits implemented in the early days of the pandemic were set to expire, affecting more than 30 million Americans. A measure protecting residents against eviction from their homes during the crisis expired last month.
The weekly initial jobless claims report Thursday showed that 1.186 million Americans filed new applications for unemployment benefits last week. The figure was the lowest weekly number since the coronavirus pandemic began in March but it was the 20th consecutive week of claims over 1 million.
Investors continued to flee to the yellow metal as a haven as the dollar held near a two-year low.
The virus known as COVID-19 has killed more than 713,000 people worldwide and sickened 19 million. About 26% of the cases — and 22% of the deaths — are in the U.S. The country has 4.88 million cases, more than any other nation.
In other markets, spot palladium increased 2.2% Thursday to $2,248.70 an ounce. It’s up 6% so far this week and rose 7% in July. Spot platinum advanced 1.7% Thursday to $990.30 an ounce. It’s up 9.1% so far this week after gaining 8.3% in July. Currently, DG spot platinum is down to $975.70, while palladium is down to $2,154.90
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