Gold Weaker, but US Labor Market Data and EU Inflation Provide Support

Gold futures closed lower on Thursday (Jan. 20) as markets came under pressure from the dollar’s appreciation. However, the gold contract moved only slightly lower. The tense situation between the U.S. and Russia continues to worry investors, and initial jobless claims came in well above expectations.

  • Gold contract was down 60 cents, or 0.03%, at $1,842.60 per ounce.
  • Silver futures were up 48.5 cents, or 2%, at $24.716 an ounce.
  • The platinum contract was up $22.4, or 2.18%, at $1,050.8 per ounce.
  • The palladium futures rose $65.30, or 3.3 percent, at $2,073.70 an ounce.

Gold contracts declined slightly as the appreciation of the dollar made gold contracts more expensive for investors holding other currencies.

The dollar’s movement index against the other six major currencies in a basket of currencies rose 0.22 percent to 95.7251.

However, with tensions rising between the United States and Russia, many investors continue to buy gold as a safe haven. U.S. President Joe Biden has threatened Russia with financial and economic sanctions and other measures, including a ban on the use of the dollar if Russia invades Ukraine.

U.S. Economic Data

Initial applications for unemployment benefits again came in higher than expected this week. The number rose to 286k, whereas only 220k had been projected. In addition, Existing Home Sales rose by only 6.18M versus a projection of 6.44M. On the other hand, the U.S. Philadelphia Fed Manufacturing Index rose to 23.2, which was surprising given a forecast of 20.

Europe Inflation Data

Inflation data were also available from the EU. The consumer price index CPI rose by 5% YoY in December, which had previously been expected. MoM, the CPI increased by 0.4%, which is in line with forecasts.

The producer price index PPI in Germany rose further in December. YoY prices increased by 24.2% which was far above expectations of 19%. MoM prices increased by 5% against a forecast of 0.8%.

The Spot Market is Open

Friday, January 21, 2022

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
09.55
1,840.50
1,841.50
+1.10
0.06%
1,836.20
1,842.10
Silver
09.55
24.34
24.44
-0.11
-0.45%
24.25
24.56
Platinum
09.55
1,035.00
1,045.00
-7.00
-0.67%
1,029.00
1,054.00
Palladium
09.55
1,984.00
2,134.00
-23.00
-1.15%
1,972.00
2,148.00
Rhodium
06.00
15,650.00
17,650.00
0.00
0.00%
15,650.00
17,650.00

Leave a Reply

Change Language
%d bloggers like this: