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Gold & Silver Fall After NFP, Copper Logs Gains

September 4, 2020 at 14:21 by Vladimir Vyun

Gold and silver fell today after the release of better-than-expected US nonfarm payrolls, while copper managed to gain. According to data from the Bureau of Labor Statistics, US employers added 1,371,000 jobs in August, in line with analysts’ predictions. But markets concentrated on other parts of the report that were better than forecasts. The unemployment rate dropped from 10.2% to 8.4%, whereas experts had predicted just a modest decline to 9.8%. Wage growth was at 0.4% versus the consensus forecast that promised no change.

The US dollar rallied after the report, putting pressure on dollar-priced commodities. That could explain the decline of precious metals. The gains of copper can be harder to understand but one of the possible explanations is that the good data added to optimism among traders. Indeed, macroeconomic data released from various parts of the world over the week was largely good. In particular, it looks like the manufacturing sector was recovering, especially in China. And that promises higher demand for the industrial metal.

Futures for delivery of gold in December fell by $5.5 (0.28%) to $1,932.3 per troy ounce as of 14:19 GMT on COMEX today. Contract for silver slipped by $0.01 (0.04%) to $28.87 per ounce. At the same time, copper climbed by $0.0445 (1.5%) to $3.0195 per pound. Spot price for platinum advanced by $9.67 (1.08%) to $901.87 per ounce, while palladium declined by $7.05 (0.31%) to $2,299.92 per ounce.

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