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Gold Pares Losses from Strong US Jobs Report, Headed for Weekly Loss

Summary:
Gold futures are trading higher at the end of the trading week after paring substantial early-morning losses. The yellow metal is still poised for a tepid weekly loss, despite tamer inflation and a weaker US dollar. April gold futures rose %excerpt%.90, or 0.07%, to ,322.60 per ounce at 15:23 GMT on Friday. Gold prices are on track for a 0.2% weekly decline, even with threats of a global trade war. Gold tumbled as much as 0.5% following the latest labor report. Year-to-date, the precious metal has advanced just 1%. Silver, the sister commodity to gold, is rallying to finish the trading week. May silver futures jumped %excerpt%.135, or 0.82%, to .63 an ounce. Should the modest gains hold, the white metal will post a weekly increase of 0.55%. According to the Bureau of Labor Statistics (BLS),

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Gold futures are trading higher at the end of the trading week after paring substantial early-morning losses. The yellow metal is still poised for a tepid weekly loss, despite tamer inflation and a weaker US dollar.

April gold futures rose $0.90, or 0.07%, to $1,322.60 per ounce at 15:23 GMT on Friday. Gold prices are on track for a 0.2% weekly decline, even with threats of a global trade war. Gold tumbled as much as 0.5% following the latest labor report. Year-to-date, the precious metal has advanced just 1%.

Silver, the sister commodity to gold, is rallying to finish the trading week. May silver futures jumped $0.135, or 0.82%, to $16.63 an ounce. Should the modest gains hold, the white metal will post a weekly increase of 0.55%.

According to the Bureau of Labor Statistics (BLS), the national economy added 313,000 jobs in February, beating initial expectations of 200,000. The unemployment rate remained unchanged at 4.1%.

The jobs report also found that wage growth moderated with hourly wages rising just four cents to $26.75 per hour. The 12-month increase in income tumbled to 2.6%, down from 2.8% in January. This has analysts suggesting that inflation may be tamer than originally thought, which could affect how the Federal Reserve moves ahead on interest rates.

Gold is generally sensitive to a rising-rate environment because it lifts the opportunity cost and sends traders into yield-bearing assets.

The US dollar could not benefit from a strong jobs report as the greenback slid 0.11% to 90.02. The US dollar is clinging to a 0.09% weekly gain. A weaker buck is good for dollar-denominated commodities like gold and silver because it makes it cheaper for foreign investors to purchase.

Other metals are surging on Friday. May copper futures soared $0.068, or 2.21%, to $3.147 per pound. May platinum futures climbed $9.60, or 1.01%, to $961.90 an ounce. May palladium futures surged $19.50, or 2.02%, to $985.10 an ounce.

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Andrew Moran
I am a full-time professional writer. Prior to my self-employment, I worked as a reporter for Digital Journal covering the politics beat and The Toronto Times reporting on the city’s entertainment scene. I currently write mostly about business, marketing and finance

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