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Gold Fails to Rise on Disappointing Jobs Data, Trump-Coronavirus

October 2, 2020 at 16:21 by Andrew Moran

Gold futures are failing to rise to close out the trading week, despite disappointing jobs numbers for September and President Donald Trump contracting the coronavirus. Although the precious metal is trading in the red on Friday, gold prices will record a substantial weekly gain. Can gold stay above $1,900 this month?

December gold futures tumbled $7.30, or 0.38%, to $1,901.10 per ounce at 16:08 GMT on Friday on the COMEX division of the New York Mercantile Exchange. The yellow metal will enjoy a weekly surge of about 2.4%, adding to its year-to-date ascent of 25.3%.

Silver, the sister commodity to gold, fell below $24 to end the trading week. December silver futures shed $0.309, or 1.25%, to $23.95 an ounce. The white metal will finish the week up more than 4%, lifting its 2020 gain to nearly 34%.

The precious metals could not rally amid developments that would traditionally be positive for gold and silver.

In September, the US economy added 661,000 new jobs, falling short of the median estimate of 850,000. The unemployment rate did, however, decrease from 8.2% to 7.9% last month. This came after initial jobless claims declined to a six-month-low of 837,000 in the week ending September 26.

Prices failed to take advantage of the near-term uncertainty surrounding President Trump and First Lady Melania Trump testing positive for COVID-19, which came soon after top White House aide, Hope Hicks, also tested positive. President Trump confirmed on Twitter that he and his wife would be starting the quarantine process immediately. Vice President Mike Pence and his wife, Karen, tested negative.

The metal markets potentially failed to surge because of a rising greenback. The US Dollar Index, which measures the greenback against a basket of currencies, rose 0.21% to 93.91, from an opening of 93.73. A stronger buck is bad for dollar-denominated commodities because it makes it more expensive for foreign investors to purchase.

In other metal assets, December copper futures soared $0.1085, or 3.79%, to $2.974 per pound. November platinum futures dropped $17.50, or 1.93%, to $888.50 an ounce. November palladium futures shed $13.20, or 0.57%, to $2,315.00 per ounce.

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

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