Gold futures rose $8.80 as investors bought gold as a safe haven. The Ukraine crisis and weak private sector employment figures in the U.S., also the depreciation of the dollar, and the decline in U.S. government bond yields support gold prices. In addition, the CPI in the euro zone rose to record levels.
- Gold futures were up $8.80, or 0.5%, at $1,810.30 per ounce.
- Silver contracts were up 11 cents, or 0.5%, at $22.707 an ounce.
- The platinum contract was up $20.5, or 2%, at $1,043.70 an ounce.
- The palladium contract was up $23, or 1%, at $2,369.50 an ounce.
The dollar index against the six major currencies in a basket of currencies fell 0.40% to 95.99, and the yield on the 10-year U.S. Treasury bond fell to 1.752%.
President Joe Biden approved the deployment of 3,000 U.S. troops to Eastern Europe, amid conflict with Russia over the Ukraine crisis. In addition, 2,000 troops will be deployed from bases in North Carolina to Poland and Germany, and 1,000 U.S. troops will be sent to Romania.
ADP showed that private sector jobs fell by 301,000 in January after rising by 776,000 in December. This is the first decline since December 2020 when the COVID wave hit wide.
The service sector saw a decline of 274,000 jobs in January, while the manufacturing sector shed 27,000 jobs.
Investors are waiting for the U.S. non-farm payrolls figures, which are to be published on Friday. Analysts had forecast an increase of only 178,000 jobs and the unemployment rate is expected to remain unchanged at 3.9%.
Meanwhile, Eurostat has released consumer price figures for the month of January. According to this, the official consumer price index rose by 5.1% YoY, which means a further increase. Not since the introduction of the euro has inflation risen so high. However, it remains to be seen how the ECB decides today in terms of the interest rate decision.
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Thursday, February 3, 2022