Gold futures closed higher on Thursday (March 3). Russian troops in Ukraine continue to advance while no diplomatic agreement has yet been reached between Russia and Ukraine.
Palladium contracts rose by almost 2.5% on fears that palladium supply could be affected by international sanctions against Russia, the world’s largest palladium producer. Russia produces 41% of the world’s palladium supply.
- The gold futures were up $13.6, or 0.71%, at $1,935.9 per ounce.
- Silver futures were up 2.2 cents, or 0.09%, at $25.212 an ounce.
- The platinum contract was up $12.8, or 1.2%, at $1,080.80 per ounce.
- The palladium contract was up $65.90, or 2.47%, at $2,730.80 an ounce.
Tensions between Russia and Ukraine continue to drive safe-haven buying. In addition, the price of gold also received a tailwind as investors expect the Federal Reserve (Fed) to take a slow approach to raise interest rates after Fed Chairman Jerome Powell signaled that the Fed will only raise rates by 0.25% in March.
Weak U.S. economic data is causing a bump in the still-strong economy. The Institute for Supply Management (ISM) announced that its services index fell to 56.5 in February, its lowest level in a year, after reaching 59.9 in January.
In addition, the U.S. reported lower than expected initial jobless claims last week.
According to the Labor Department, initial jobless claims fell by 18,000 last week to 215,000, the lowest level since the beginning of the year.
The number of jobless claims was similar to the average weekly number in the pre-COVID-19 pandemic period in the United States.
Investors are watching the nonfarm payrolls figures to be released today.
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Friday, March 4, 2022