Gold futures closed lower on Thursday (April 6) as investors took profits after the contract reached a 13-month high earlier in the week. The move came as investors awaited the release of US non-farm payrolls data to assess the direction of the Federal Reserve’s (Fed) interest rates.
Gold futures were down $9.20, or 0.45%, at $2,026.40/ounce. Meanwhile, silver futures rose 5.60 cents, or 0.22%, to close at $25.093/ounce, platinum futures rose $9.40, or 0.93%, to close at $1,016.80/ounce, and palladium futures rose $37.10, or 2.6%, to settle at $1,462.40/ounce.
According to Kolin Zzinski, an analyst at SIA Wealth Management, gold futures were lower due to investors taking profits after the contract rose to $2,038.20/ounce on Tuesday (April 4), which was the highest level since March 8, 2022. Investors may also have slowed their trading before the release of US non-farm payrolls figures on Friday.
The New York Gold Market was closed on Friday, April 7, for Good Friday. Gold futures rose 2% overall for the week.
The gold market was also under pressure as St. Louis Fed President James Bullard stated that the Fed needs to continue to raise interest rates to 5.5%-5.75% in order to curb inflation. The financial pressure created by the bankruptcy of Silicon Valley Bank (SVB) may have a negative effect on the US economy.
Investors were waiting for US non-farm payrolls data on Friday to assess the direction of the Fed’s interest rates. Analysts expected employment numbers to have risen by only 238,000 in March, following a jump of 311,000 jobs in February. The unemployment rate was expected to hold steady at 3.6% in March.
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Friday, April 7, 2023