Gold closes down $5.6 as the dollar and U.S. Treasury yields rose – U.S. jobs data and average hourly earnings rose more than expected

Gold futures closed lower on Friday (Dec. 2) as the dollar and U.S. Treasury yields initially reacted to the release of higher-than-expected nonfarm payrolls data. Meanwhile, hourly worker wages were also higher than expected. This could have an impact on the Fed’s interest rate decision.

  • Gold futures fell $5.6, or 0.31%, to $1,809.6 per ounce. However, the price of gold rose 3.2% this week.
  • Silver futures rose $40.9, or 1.79%, to close at $23.25 per ounce.
  • Platinum futures fell $28.3, or 2.68%, to settle at $1,026.6 per ounce.
  • Palladium futures were down $45.20, or 2.3%, at $1,901.10 per ounce.

Gold contracts have been pressured by the strength of the dollar and the rise in U.S. Treasury yields. A stronger dollar will reduce the attractiveness of gold. This will make gold contracts more expensive for holders of other currencies. While a rebound in U.S. government treasury yields will increase the cost of owning gold. This is because gold is an interest-free asset.

Nonfarm payrolls figures were the last key economic numbers before the Fed’s final monetary policy meeting of the year on Dec. 13-14. The U.S. Bureau of Labor Statistics reported Friday that nonfarm payrolls rose by 263,000 in November, while analysts had expected an increase of 200,000 jobs. The unemployment rate remained unchanged at 3.7%, in line with analysts’ expectations.

Meanwhile, average hourly employee wages rose 0.6% month-on-month. This exceeded the forecast of a 0.3% increase. Year-on-year, it rose by 5.1%, exceeding expectations of 4.6%.

Hourly wages data are used by the Fed as an indicator of inflation.

The Spot Market is Closed

Saturday, December 3, 2022

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
05.00
1,797.30
1,798.30
-5.70
-0.32%
1,777.90
1,805.30
Silver
05.00
23.09
23.19
+0.34
+1.52%
22.25
23.32
Platinum
05.00
1,013.00
1,023.00
-28.00
-2.69%
998.00
1,055.00
Palladium
05.00
1,824.00
1,974.00
-55.00
-2.93%
1,808.00
1,055.00
Rhodium
05.00
12,100.00
14,100.00
0.00
0.00%
12,100.00
14,100.00

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