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Why Did Gold and Silver Struggle on Thursday, August 11?

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Gold and silver lost momentum

After starting the day on a flat note, gold and silver prices weakened as the day progressed on Thursday, August 11. At 2:30 PM EDT on Thursday, August 11, the COMEX gold futures contract for December delivery was trading at $1,349.65 per ounce, a drop of ~0.17%.

The COMEX silver futures contract for September delivery was trading at $20.07 per ounce, a drop of ~0.5%. Please read Copper Is Stable, Gold and Silver Struggle Early on August 11 to learn how metals performed in early morning trading on Thursday, August 11.

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Market awaits US retail sales data

Gold prices remained little affected by the US initial jobless claims released on Thursday, August 11. According to the data released by the Department of Labor at 8:30 AM EDT on August 11, the initial jobless claims decreased by 1,000 in the last week to 266,000.

This is 1,000 more than the market’s expectation of 265,000 jobless claims and failed to give strong clues about a potential near-term interest rate hike by the Federal Reserve. The odds of an interest rate hike by the Fed increased after the release of better-than-expected US jobs data released at the end of last week.

According to data released by the Bureau of Labor Statistics in the last week, the non-farm payrolls increased by 255,000 in July. This was better than the Market’s expectation of creation of 180,000 jobs and dented the sentiment. The chances of an interest rate hike in December stands at 40% on Thursday, August 11.

At 3:00 PM EDT on August 11, precious metal producers Barrick Gold Corp. (ABX) and Silver Wheaton Corp. (SLW) gained ~0.07% and ~1.6%. Newmont Mining Corp. (NEM) and Royal Gold (RGLD) fell by ~0.13% and ~0.78%, respectively. The SPDR Gold Trust ETF (GLD) fell by ~0.47%.

The final article in this series explains the performance of miners on Thursday, August 11.

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