Author of the article:
Gold prices rose over 1% on Thursday
supported by a dip in the dollar and data showing U.S. private
payrolls rose less than expected last month.
Spot gold rose 1.2% to $1,868.41 per ounce by 1:46
p.m. ET (1746 GMT), having earlier risen to a one-week high.
U.S. gold futures also settled up 1.2%, at $1,871.4.
The dollar index was down 0.7%, slipping off a
one-week high touched on Wednesday.
“(The job data) is really raising the recession concerns
that have been brewing in the market and supporting gold,” said
Ryan McKay, commodity strategist at TD Securities
ADP National Employment Report data showed private payrolls
rose by 128,000 jobs last month versus forecast for an increase
of 300,000 jobs.
While the Fed is trying to dampen demand for labor as it
tries to tame soaring inflation, it needs to do so without
pushing the unemployment rate too high.
Investors will now keep a close eye out on Friday’s nonfarm
“All the pieces of this morning are pointing towards
continued inflation and possibly the Fed not been able to
address it as aggressively as they hope due to weakening
employment numbers,” RJO Futures senior market strategist Bob
Fed Vice Chair Lael Brainard on Thursday said she backs at
least a couple more half-point interest rate hikes, with more on
tap if price pressures fail to cool.
While bullion is considered a safe haven during times of
political and economic uncertainty, higher interest rates
increase the opportunity cost of holding gold, which bears no
Spot silver rose 2.1% to $22.26 per ounce.
Platinum gained 2.7% to $1,023.69, rising to $1,030.9
earlier, its highest since last March.
Palladium was up 2.5% to $2,047.73, going as high as
5.5% to $2,107.15, its highest in two weeks.
Talks of progress in the chip market could get manufacturing
back up in the automotive industry, said Philip Streible, chief
market strategist at Blue Line Futures in Chicago.
(Reporting by Seher Dareen and Eileen Soreng in Bengaluru;
editing by Diane Craft and Krishna Chandra Eluri)
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