Gold holding after losses as it waits for US jobs data

The gold priced has steadied after a week of sliding prices as the Dow Jones broke new records. This morning it was up to $1,268.49, having been as low as $1,261 yesterday. Futures gold for December settled at $1,274.40.

The low price of the dollar has been a key factor in gold’s recent run through July. Yesterday the greenback was down against the euro, yen and Swiss franc following slightly weaker than expected US service data and employment numbers. Markets have now priced in minimal chances of a Federal Reserve interest rate hike before December. Gold’s near future price now looks to be determined by US jobs data expected later today.

Tom Kendall, an analyst for ICBC Standard Bank told Reuters “we’re still in a $1,200-$1,300 range and there doesn’t seem enough of anything material to worry investors sufficiently to break us through that upper level. On the downside it’s been very similar, on recent occasions where (gold has) got close to $1,200 its been well supported through a combination of physical demand and defensive buying from macro investors.”

The World Gold Council’s most recent report has analysed gold demand over the last 12 months. “Last year’s growth was solely down to record ETF inflows, while consumer demand slumped. So far this year we have seen steady ETF inflows in Europe and the US,” said the body’s head of market intelligence Alistair Hewitt. He continued: “Jewellery demand has recovered with good growth in India, while retail investment and technology demand is up too.”

The report says demand has slowed by a tenth to 953 tonnes in the second quarter of 2017 compared 2016. For the first half of 2017 it is down 14 percent by comparison to last year.

Other metals looked more robust: Platinum rising above its 200 day average to $958.95, while silver was 0.6% up at $16.64 an ounce. Meanwhile palladium looked set to break nine-sessions of gains, dropping 0.9% to $886.75 an ounce.

Link to this article: : http://www.goldmadesimplenews.com/gold/gold-holding-after-losses-as-it-waits-for-us-jobs-data-13326/

Posted by on Aug 4 2017. Filed under Gold News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

Leave a Reply

The Atlas Pulse Report