Gold futures closed higher on Tuesday (Jan. 4) as traders took advantage of Monday’s sell-off and bought the dip. The United States released weak economic data which should push gold prices higher in the short term. Short-term traders may now speculate on this. In addition, concerns about the spread of the COVID-19 virus continue to be a driving force behind physical gold buying.
- Gold futures were up $14.5, or 0.81%, at $1,814.6 per ounce.
- Silver futures were up 24.6 cents, or 1.08%, at $23.056 an ounce.
- The platinum contract was up $17.2, or 1.8%, at $971.2 per ounce.
- The palladium futures rose $33.70, or 1.9%, at $1,859.70 an ounce.
Weak U.S. economic data is one factor supporting gold buying. The Institute for Supply Management (ISM) reported last night that its U.S. manufacturing index fell to 58.7 in December, its lowest level since January 2021 (from 61.1). In November, the manufacturing index was hurt by a slowdown in demand and new orders.
The U.S. Department of Labor’s Bureau of Labor Statistics has released its Job Openings and Labor Turnover Rate (JOLTS) survey results, which are of relevance to the Fed. The number of job openings declined by 529,000 in November to 10.6 million. Any release of labor market data could have an impact on the Fed’s monetary policy, which plans to wind down its QE this year and raise interest rates.
On top of that, COVID-19 is spreading and the Omicron strain, which is an uncertainty factor for the world economy, continues to drive purchases of physical gold.
The Spot Market is Open
Wednesday, January 5, 2022