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Gold futures ended lower on Friday, reversing early gains, part of a broader sell-off in risk assets after a weak U.S. jobs report raised concerns that the Federal Reserve’s wait for current interest rates could lead to a real economic slowdown.
price Stocks briefly rose early in the session as weak U.S. jobs data suggested the Federal Reserve may adopt looser interest rate policies, but the momentum was subdued by a slump in stocks.
The number of non-farm payrolls in the United States increased by 114,000 in July, which was far lower than expected. The unemployment rate rose from 4.1% to 4.3%. Average hourly wage growth declined. All signs indicate that the Federal Reserve may cut interest rates next month.
While Friday’s sluggishness weighed on gold prices, analysts said a more dovish stance from the Federal Reserve should ultimately boost prices.
The flight to safety in the stock market will be a net drag on gold in the short term, but “this is the first substantially weaker jobs report in a year… If this proves to be a trend, it means the Fed will cut interest rates multiple times.” This year…is a green light for gold to hit record highs,” Nicky Shiels, head of metals strategy at MKS PAM, told Bloomberg.
Front month Comex gold (XAUUSD:CUR) for August delivery has been completed -0.4% It hit $2,425.70 per ounce on Friday, down 1.5% from the 2024 settlement high of $2,462.40 per ounce hit on July 16; the December contract traded as high as $2,522.50 per ounce before settlement, the highest ever for the most active contract. medium price -0.4% The price is $2,469.80 per ounce.
Front month August Comex Silver (XAGUSD:CUR) ended on Friday -0.3% to $28.246 per ounce, 12.3% lower than the year-to-date settlement high of $32.205 per ounce on May 20.
ETF:(NYSE:GLD), (NYSE:GDX), (GDXJ), (IAU), (NUGT), (PHYS), (GLDM), (AAAU), (SGOL), (BAR), (OUNZ), (SLV), (PSLV), (SIVR), (SIL), (SILJ)
This week, gold rose 1.9% as tensions in the Middle East and expectations of an interest rate cut by the Federal Reserve increased safe-haven demand, increasing gold’s appeal; silver fell 1.4% this week.
Tim Hayes of Ned Davis Research said 10-year Treasury yields and Barclays Global Aggregate bond yields have reached their lowest levels since March, “which is positive for gold given its negative correlation with yields.” market observationpointing out that when yields fall, gold’s “competitive advantage” over bonds increases.
George Milling-Stanley said that if the economic and political environment becomes “more favorable for gold – for example, the dollar is getting weaker due to interest rate cuts – gold may trade in a range of $2,500 to $2,700 between”. State Street Global Advisors.
