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Gold Fails to Rise for a Second Day

August 5, 2015 at 15:04 by Andriy Moraru

Gold failed to fix its price at the intraday highs today despite a major supporting factor presented by the lower-than-expected employment growth in the United States. It is the second day for the precious metal when it rises significantly during the first half of the day but loses it all during the second half.

Gold had been trading in a moderate uptrend before the National Employment Report for July was released by ADP at 12:15 GMT today. The report has shown an increase of 185,000 jobs vs. 235,000 reported for June and 215,000 expected for July. Although those are not the official numbers by the US Bureau of Labor Statistics, which are scheduled for release this Friday, they give some hint for the trend in the American employment situation. Faster employment growth implies sooner interest rate increase, which is seen as negative for gold — a commodity that is often used as a simple investment opportunity for cheap money.

Nevertheless, gold fell from its daily peak as soon as some more fundamental indicators have been released in the United States. Both Markit’s and ISM’s non-manfuacturing PMIs have shown unexpected growth, resulting in a considerable appreciation of the US dollar and the decline of such commodities as gold, silver, and platinum.

Gold is currently down from $1,085.86 to $1,084.64 per troy ounce as of 15:04 GMT on CME. The daily maximum was at $1,092.43 per troy ounce for the metal. Yesterday it rose a little from $1,083.47 to $1,085.86 while its yesterday’s high reached $1,094.72.

If you have any questions and comments on the commodities today, use the form below to reply.

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