Gold futures are trying to rebound on Monday after last week’s positive US economic data, adding to the growing odds that the Federal Reserve will raise interest rates later this month. Investors will now eye key consumer numbers, including August expectations and a July credit reading, this week.
December gold futures rose $1.90, or 0.16%, to $1,202.30 per ounce at 14:51 GMT on Monday. The yellow metal suffered a 0.5% loss last week, stemming mostly from bullish economic news. So far in 2018, gold prices are down nearly 10%.
Silver, the sister commodity to gold, is rallying to kick off the trading week. December silver futures advanced $0.07, or 0.49%, to $14.24 an ounce. The white metal also endured a terrible week, recording a 2.7% decline.
On Friday, the Bureau of Labor Statistics (BLS) reported a gain of 201,000 jobs in August, beating market forecasts of 191,000 jobs. The jobless rate was unchanged at 3.9%, but wage growth was high, climbing 2.9% to $27.16 per hour, the fastest pace in more than nine years.
Analysts note that this will give the US central bank what it needs to pull the trigger on a rate hike at the September Federal Open Market Committee (FOMC) policy meeting. The market is penciling in one more rate hike in December.
The US dollar could not keep up the momentum on Monday, tumbling 0.28% to 95.12. The currency weakened ahead of two key meetings at the European Central Bank (ECB) and the Bank of England (BOE). A lower buck is typically good for commodities priced in dollars because it makes it cheaper for foreign investors to purchase.
Precious metals may not find any significant and consistent upward direction in the
In other metal commodities, September copper futures shed another $0.05, or 1.67%, to $2.71 per pound. September platinum futures surged $15.60, or 2%, to $795.00 per ounce. September palladium futures jumped $6.20, or 0.64%, to $975.00 an ounce.
If you have any questions and comments on commodities today, use the form below to reply.