Gold Down-U.S. Jobs Report
Gold was lower in Asia on Monday morning, as the dollar held near a one-month low. The state of the labour market in the United States is also on investors’ thoughts as they await the release of the country’s monthly employment report.
On August 1, gold futures were down 0.27 per cent to $1,812.35 as they rolled over to the December 21 contract. On Friday, the yellow metal fell from a two-week high as the dollar recovered from a one-month low. The dollar, which usually moves in the opposite direction of gold, fell slightly on Monday. It fell 0.8 per cent in the prior week, its lowest weekly performance in more than two months. The July jobs report for the United States, which includes non-farm payrolls, will be announced on Friday.
The data will provide investors with more information about the timing for the Federal Reserve of the United States to commence asset tapering, he noted.
Fed Chairman Jerome Powell warned that interest rate hikes were “way off” and that the labour market still had some territory to cover as he delivered the Fed’s policy decision. That pushed gold up more than 1%. After failing to break through support at $1,832.80, spot gold may return to its July 23 low of $1,789.98 per ounce.
Oil Prices Sink
Energy equities are set for a neutral to lower start, pulled down by complex crude weakness. However, broader index futures are higher than another busy week of corporate earnings.
WTI and Brent are down nearly 1% in early trading. It has been weighed down by harmful Chinese economic data and prolonged Asian lockdowns. China’s factory activity expanded at the weakest rate in 17 months in July. Meanwhile, according to GasBuddy statistics, gasoline demand for the week ending July 31 set a new 2021 record. TSA checkpoint data showed a post-pandemic form for air travellers yesterday of 2,238,462.
Natural gas futures are up 1.5 per cent as weekend forecasts warm up. The NOAA 6-10 and 8-14 day forecasts both predict above-seasonal temperatures for most areas east of the Rocky Mountains.
China has led Asia’s economic growth. If the slowdown worsens, there will be growing concerns that the global outlook would suffer significantly. Oil output from the Organization of the Petroleum Exporting Countries (OPEC) increased in July to its highest level since April 2020. The group lifted production limitations under a contract with its partners. Top exporter Saudi Arabia phased out a voluntary supply cut.
The U.S. will not close down again to combat Covid-19.
Still, things are likely to get worse as the delta form spurs a surge in cases, primarily among the unvaccinated, according to top U.S. infectious disease specialists Dr Anthony Fauci on Sunday.
In other developments, the U.S. and Britain said on Sunday that they thought Iran was responsible for an attack on an Israeli-managed petroleum product ship off the coast of Oman Thursday. There killed a Briton and a Romanian and that they would work with partners to retaliate.
The post Gold Down-U.S. Jobs Report appeared first on FinanceBrokerage.