Gold Ticks up on ADP Jobs Data

Gold Ticks up on ADP Jobs Data

Gold ticks up on disappointing ADP jobs data. The yellow had been little changed near a four-week high early Wednesday as investors awaited the release of economic data.

In August, private payrolls gained 374,000 jobs, far below the expected 600,000 jump, while still above July’s 326,000, according to ADP. The Institute for Supply Management is also scheduled to report its monthly manufacturing figures Wednesday. The reports are all key indicators of the state of the economy and likely to influence the pace of the Federal Reserve’s tapering efforts from pandemic-era stimulus measures.

December gold futures rose 0.3% Tuesday to settle at $1,818.10 an ounce on Comex. The precious metal was down $1.40 in the first two days of the week and rose just 90 cents in August. The yellow metal climbed $372 – or 24% – in 2020 because of uncertainty about the economy and the pandemic and is down 4.1% so far in 2021. The December contract is currently down $1.00 (-0.06%) to $1,817.10 and the DG spot price is $1,816.00.

Amid lackluster sentiment, holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, slipped 0.2% Tuesday to 1,000.26 metric tons, its lowest level since April 2020, Reuters reported.

Fed Chairman Jerome Powell said last week that the central bank could begin reducing monthly bond purchases this year, but that that may not signal an interest rate hike is coming. Low interest rates are typically bullish for gold, and the comments sent the yellow metal surging last week. Gold also has some support because of uncertainty over the pandemic.

But the yellow metal has become less attractive to some investors with riskier assets such as equities rising to records and even safer Treasury yields rising. Stocks recorded their second consecutive monthly rally in August and remained near all-time highs despite slipping Tuesday.

December silver futures were unchanged Tuesday, settling at $24.01 an ounce on Comex. The front-month contract decreased 0.4% in the first two days of the week. Silver lost 6% in August, its third consecutive monthly decline. The metal rose 47% in 2020 and is down 9.1% so far this year. Silver prices are tied to industrial demand, which could taper if lockdowns are reinstated and dampen manufacturing. The December contract is currently up $0.239 (+1.00%) to $24.245 and the DG spot price is $24.30.

Spot palladium slid 0.3% Tuesday to $2,488.00 an ounce, but is up 2.5% so far this week. It fell 7% in August, but is up 1.5% so far in 2021. Currently, the DG spot price is down $14.00 an ounce to $2,477.00

Spot platinum gained 1.3% Tuesday to $1,025.30 an ounce and advanced 0.8% in the first two days of this week. The metal dropped 3.1% in August and is down 4.5% in 2021. The DG spot price is down $8.30 an ounce, currently, to $1,016.80.


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