On Thursday, the unemployment claims numbers stood lower than the forecasted figure of 245,000.
On Thursday, precious metals saw yet another day of recovery as the equities market fell.
The US Dollar Index, which prices the dollar against a basket of six major world currencies, has risen ~0.46% on a trailing-five-day basis.
Not only does market sentiment play on precious metals, but interest rates also remain an important factor.
Precious metals stabilized on Wednesday, May 10, and gold revived from an eight-week low, increasing 0.23% and closing at $1,218.9 per ounce.
The price of gold witnessed a rebound on Monday, May 8, after touching $1,221 per ounce—the lowest level we’ve seen since the middle of March.
Fewer haven bids and speculation surrounding rises in the US interest rate are among the important indicators that have contributed to plummeting silver prices.
Gold and silver both dumped 1.6% and 1.5%, respectively, on May 4, while platinum and palladium rose 0.37% and 0.17%, respectively.
While the US dollar has seen a decline in 2017, the increased possibility of a Fed rate hike in June could give the currency some breathing room.
Fluctuations in precious metals are determined by the overall stance of the economy, and the numbers that came out on Wednesday, May 3, played a big hand.
Fed members met on May 2–May 3, and markets were anticipating a 69% chance of another rate hike.
Precious metals saw yet another slump on Wednesday, May 3, with gold, silver platinum, and palladium falling 0.68%, 1.7%, 2.3%, and 1.8%, respectively.
Geopolitical risks had been playing on haven bids for precious metals, but now, we may be seeing to be a temporary respite—however brief—from global worries.
Gold touched a three-week low on Monday, May 1, but it now appears to be rebounding.
Among the four precious metals, silver has been the worst-performing metal over the past month.
Gold dropped ~1.6% during the last week of April, which was its worst weekly fall since March 10, 2017. Gold futures for July expiration ended the day at $1,268.30 per ounce on April 28.
The DXY index, which measures the dollar against a basket of six major world currencies, tumbled to 99.05 on Wednesday, April 26, from as high as 100 during mid-April.
Gold touched a high of $1,297.40 per ounce on April 17, slightly shy of the $1,300 per ounce mark, due to the rising fear of political uncertainty, especially from North Korea and Syria.
France’s presidential election has been a booster for gold and silver over the past month due to the uncertainty surrounding the proceedings.
The global reserve currency, the US dollar (UUP), has been stuck in a narrow range for the last few weeks. It formed temporary bottom near 98.30.