Gold Market Flashback
After the Fed postponed the start of taper, for now, gold responded by shooting above $1,800 on Friday to its highest level in three weeks. It closed up $24.30 to $1,819.50 an ounce, a gain of 1.4% and the highest weekly level since May.
Investors are now looking ahead to the U.S. jobs report, which will be released on Friday, September 3. The labor market report may have an impact on the near-term price performance of gold.
The revival of employment growth remains one of the most important factors for Fed policymakers. U.S. employment lost about 21 million jobs between March and April 2020 during the Covid-19 crisis. By now, the Fed has been focused on the labor market for more than a year already.
Oil market flashback
Crude oil prices rose as U.S. oil and gas production facilities rushed to evacuate workers from oil rigs in the Gulf of Mexico before a Category 3 hurricane hit. Oil fields that supply about 17% of U.S. oil production are located there, and more than 45% of total U.S. refining capacity is located there as well.
WTI crude oil was at $68.74 a barrel, up $1.32, or 2%. The week before last, WTI was down 8.9%, reflecting concerns about the slowdown in the Chinese economy and the fast-spreading Delta variant.
Brent crude prices were at $72.70, up $1.63, or 2.3%. Last week, Brent rose 11.5% after falling 7.7% the week before last.
Oil prices rose after the Federal Reserve’s report on the U.S. economy remained positive. However, there is still a risk of a severe outbreak of coronavirus.
The Spot Market is Open