In a downward shift on Thursday, August 31, gold futures faced negative pressure, largely attributed to a surging dollar and mounting worries about escalating US inflation metrics. Investors remained attentive to the impending release of US non-agricultural employment data, a crucial factor for gauging the Federal Reserve’s (Fed) potential course of action regarding interest rates.
Gold futures experienced a dip of $7.10, equivalent to 0.36%, ultimately settling at $1,965.90 per ounce. Similarly, silver faced a decline of 29.20 cents, accounting for a 1.16% drop, to stabilize at $24.812 an ounce. Platinum futures mirrored the trend, recording a decrease of $8.90, or 0.91%, closing at $974.40 per ounce. Palladium futures also slid, witnessing a fall of $10.30, or 0.8%, to settle at $1,218.70 per ounce.
Throughout the month of August, the overall performance of gold futures reflected a decrease of 2.2%.
This shift in market dynamics was largely influenced by the robustness of the dollar index against a basket of six major currencies, marking an increase of 0.44% to reach 103.6126 overnight. The pronounced strength of the dollar rendered gold contracts, priced in dollars, less appealing to investors, thus contributing to the observed decline in value.
Furthermore, market sentiment was swayed by apprehensions pertaining to US inflation figures, which had climbed past the 3% mark. Data from the US Commerce Department revealed that the general personal consumption expenditures (PCE) price index, encompassing both food and energy categories, witnessed a year-on-year upsurge of 3.3% in July. This followed a 3.0% increase observed in June. The core PCE index, a key metric used by the Fed to assess inflation, excluding food and energy, experienced a comparable trend, rising by 4.2% in July year over year, as opposed to a 4.1% hike in June.
Market observers were notably fixated on the release of US non-agricultural employment figures for the month of August. Analysts’ predictions anticipated a rise of 170,000 jobs, following a notable increase of 187,000 jobs in July. Concurrently, the projected unemployment rate for August stood at a steady 3.5%.
In conclusion, gold’s downward trajectory, culminating in a $7.10 decrease, can be attributed to a confluence of factors, including the strengthening dollar and heightened concerns surrounding the persistent uptick in US inflation rates. The upcoming release of US non-agricultural employment data further underscored the intricate interplay of market forces that influenced the trajectory of precious metals. As investors and analysts alike await critical economic indicators, the broader implications for market trends and the Fed’s potential decisions loom large on the horizon.
The Spot Market is Open
Friday, September 1, 2023
| Metals Updated at | USD Bid/Ask | Ounce Change | Low/High |
| Gold 07.00 | 1,939.40 1,940.40 | -0.30 -0.02% | 1,938.80 1,941.00 |
| Silver 07.00 | 24.41 24.50 | 0.00 0.00% | 24.38 24.50 |
| Platinum 07.00 | 969.00 979.00 | 0.00 0.00% | 969.00 980.00 |
| Palladium 06.30 | 1,195.00 1,255.00 | -1.00 -0.08% | 1,194.00 1,259.00 |
| Rhodium 05.00 | 3,450.00 4,650.00 | 0.00 0.00% | 3,450.00 4,650.00 |