Gold struggles at one-week low levels
Gold started the day on a weaker note on August 8 and carried the same weakness throughout the day. At 2:40 PM EST on August 8, the COMEX gold futures contract for December delivery was trading at $1,341.35 per ounce—a drop of ~0.23%.
The COMEX Silver futures contract for September delivery was trading at $19.76 per ounce—a decline of ~0.27%. Read Copper Is Stable, Gold and Silver Are Weaker Early on August 8 to learn how metals traded in the early morning hours on August 8.
US jobs data dented the sentiment in the gold market
The sentiment in the gold market was dented by better-than-expected US jobs data. According to data released by the U.S. Bureau of Labor Statistics on August 5, the non-farm payrolls increased by 255,000 jobs in July. This was better than the market’s expectation of 180,000 jobs in July. This better-than-expected data made the dollar move higher and weighed on dollar-denominated commodities like gold and silver.
The stronger jobs data increased the chances of an interest rate hike by the Fed and weighed on gold prices. The odds of an interest rate hike in September was 10% before the release of US non-farm payrolls last week. However, it spiked to 21% as of August 8. Similarly, the chances of an interest rate hike at the end of this year in December spiked from 33% to 49%. Read Why Gold Is Closely Tied to Interest Rates to learn why interest rates impact gold prices.
At 2:45 PM EST on August 8, precious metal producers Barrick Gold (ABX), Newmont Mining (NEM), Silver Wheaton (SLW), and Royal Gold (RGLD) gained ~1.4%, ~0.61%, ~1.6%, and ~1.5%, respectively. The SPDR Gold Trust ETF (GLD) fell ~0.07%.
In the next part, we’ll discuss how metals and mining companies performed on August 8.