Commodity Blog

Commodity news, technical and fundamental analysis, market data on precious metals, energies, industrial metals, and soft commodities


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

March 9, 2018 at 16:43 by Andrew Moran

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.

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

Leave a Reply