Gold closes up $29.1 after better-than-expected U.S. nonfarm payrolls numbers

Gold futures closed higher on Friday (Jan. 6), hitting a seven-month high, supported by a weaker dollar after the release of U.S. economic data reinforced expectations that the Federal Reserve (Fed) will slow the pace of interest rate hikes.

  • Gold futures rose $29.1, or 1.58%, to close at $1,869.7 per ounce.
  • Silver futures rose 55.8 cents, or 2.38%, to close at $23.982 per ounce.
  • Platinum futures rose $34.7, or 3.24%, to close at $1,104.3 per ounce.
  • Palladium futures rose $74, or 4.3%, to close at $1,806.70 per ounce.

Gold futures rose to the highest level since June 13, supported by the dollar index against a basket of six major currencies, which fell 1.11% to 103.8790 on Friday.

U.S. nonfarm payrolls figures were unexpectedly high on Friday. However, the average hourly earnings of workers – the data the Fed focuses on when looking for signs of inflation – came in below expectations. This suggests that inflation has peaked. This could be a factor that will cause the Fed to slow its rate hike.

The U.S. Labor Department said Friday that nonfarm payrolls rose by 223,000 in December. This was above analysts’ expectations of 200,000 jobs.

The unemployment rate fell to 3.5%, below analysts’ expectations of 3.7%, and average hourly employee wages rose 0.3% month-on-month. The increase slowed from 0.6% in November and was below analysts’ expectations of 0.4% year-over-year. Average hourly employee wages rose 4.6% in December, below analysts’ expectations of 5.0%.

The ISM non-manufacturing Purchasing Managers Index fell to 49.6 in December, below analysts’ expectations of a 55.0 reading from 56.5 in November. It was the first decline since May 2020, while non-manufacturing prices fell to 67.6, the lowest level since January 2021, indicating a slowdown in inflation.

The Spot Market is Closed

Saturday, January 7, 2023

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
05.00
1,865.70
1,866.70
+32.50
+1.77%
1,830.90
1,871.10
Silver
05.00
23.82
23.92
+0.60
+2.58%
23.18
24.00
Platinum
05.00
1,090.00
1,100.00
+32.00
+3.02%
1,046.00
1,104.00
Palladium
05.00
1,739.00
1,889.00
+69.00
+4.13%
1,665.00
1,896.00
Rhodium
05.00
11,250.00
13,250.00
0.00
0.00%
11,250.00
13,250.00

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