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Tuesday, May 24, 2022

Gold Slips for 2nd Day on Better U.S. Data

Gold Slips for 2nd Day on Better U.S. Data© Reuters.

Investing.com – The good feelings over U.S. jobs and manufacturing numbers are belatedly making its way to the dollar — and costing gold in the process.

After giving gold a strong five-day run through Thursday, investors have been making a beeline toward the greenback, letting the spot price and futures of the yellow metal fall for a second day in a row.

The contract, reflective of trades in physical bullion, was down by $4.21, or 0.3%, at $1,313.44 by 1:56 PM ET (18:56 GMT).

In , the benchmark April contract on the Comex division of the New York Mercantile Exchange settled down $2.80, or 0.2%, at $1,319.30 per ounce.

Gold prices have declined since Friday’s U.S. January jobs report, which showed a solid growth of 304,000 jobs versus an estimated gain of 165,000. The Institute of Supply Management’s manufacturing purchasing managers’ index, meanwhile, rose to 56.6 in January, up from 54.3% in December,he previous month and defying expectations for a drop to 54.2.%

Even White House economic adviser Kevin Hassett’s remarks that there was still “a lot of work to do” on the U.S.-China trade talks did not boost gold on Monday. Investors have been buying gold either as a hedge against a further U.S. fallout with China or a direct bet that a trade deal between the two countries would not happen.

Despite the slide of the past two days, gold was still in firm $1,300 territory, with enough resilience to make new 2019 highs thanks to the Federal Reserve’s promise to be patient with rate hikes, say some analysts. Gold is up nearly 3% this year.

A number of Fed speeches will get market attention this week, as traders watch for further clues on interest rates. Topping the agenda will be remarks from , who will be speaking Wednesday at a town hall meeting for teachers, in Washington.

Along with Powell, other central bank speakers are Fed Vice Chair , Cleveland Fed President , St. Louis Fed President and Fed Governor , all of whom could give gold bugs a clue on whether the metal can continue to move higher.

The traded at $1,363.80 per ounce, up $9.70, or 0.7%, making it the world’s most valuable traded metal.

Spot palladium first traded above gold earlier this month when it hit record highs of $1,440.35 on Jan. 17. Gold’s own peaks have been higher in the past, rallying above $1,900 in 2011.

Trades in other Comex metals as of 1:56 PM ET:

up $16.05, or 1.2%, at $1,329.65 per ounce.

down 5.8 cents, or 0.4%, at $15.87 per ounce.

down $4.60, or 0.6%, at $822.10 per ounce.

up 2.8 cents, or 1%, to $2.80 per lb.

Source: Investing.com

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