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Could the Economic Numbers on September 1 Impact Gold?



Economic data

After tumbling to a two-month low level, gold rebounded on Thursday, September 1. Gold futures for December expiration increased by 0.44% and closed at $1,317.10 per ounce.

Investors kept a close watch on the economic numbers that came out of the US, as they impact precious metals substantially.

The unemployment claims number that was announced on Thursday, September 1, stood at 263,000, a little lower than the analysts’ expectation of 256,000. This report measures the number of individuals who filed for unemployment insurance for the first time during the past week. The lower the unemployment figure, the better it is for the economy.

However, the ISM Manufacturing PMI, which measures the level of a diffusion index based on surveyed purchasing managers in the manufacturing industry, was unfavorable at 49.2—much lower than the forecasted figure of 52. The lower number is not beneficial for the economy in general.

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Gold and silver buoyed

These figures pointed a stronger and more sustainable labor market strength. The power of the labor market could eventually be harmful to the non-yield-bearing assets. However, gold rose on Thursday, September 1, and silver rose by 1.3% on the same day. However, platinum and palladium fell.

The mining funds and the mining shares also drew strength from the two core precious metals. The Sprott Gold Miners ETF (SGDM) and the iShares MSCI Global Gold Miners ETF (RING) were up by 3.8% and 3.7%, respectively, on the same day.

Mining shares RandGold Resources (GOLD), Silver Wheaton (SLW), and Franco-Nevada Corp. (FNV) rose by 3%, 3.6%, and 3%, respectively, on September 1. Combined, these three miners make up 14.7% of the changes in the VanEck Vectors Gold Miners ETF (GDX).


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