Gold prices headed higher on Monday after tumbling to their lowest level in three weeks following Friday’s surprisingly strong jobs report, which helped send Treasury yields and the dollar higher to the detriment of the yellow metal. Price action
Gold for April delivery
rose $6.80, or 0.4%, to trade at $1,883.40 an ounce on Comex. On Friday, prices for the most-active contract settled at their lowest level since Jan. 10 after falling 2.7%, the biggest one-day drop since June 17, 2021.
declined by 3.5 cents, or 0.1%, to $22.37 per ounce after falling more than 5% last week.
advanced 40 cents, or less than 0.1%, to $980.70 per ounce, while palladium for March delivery
fell by $64.90, or 4%, to $1,553.50 per ounce.
traded at $4.021 per pound, down 3.6 cents, or 0.9%
Market drivers Gold is “trying to recover some of the losses it endured at the end of last week after Friday’s U.S. jobs data came in way above expectations,” said Rupert Rowling, market analyst at Kinesis Money.
Prices for the precious metal had surged above $1,900 an ounce and remained there for most of January on the prospect of the Federal Reserve soon ending its policy of interest rate hikes to curb persistently high inflation, he said in a daily report. However, the “massively positive jobs figures…delivered the shock that gold investors were fearing as the strong state of the world’s largest economy gives the Fed plenty more room to continue its policy of rate hikes without fearing triggering a recession,” said Rowling. “With more hikes now likely, gold has suffered due its lack of yield making it less attractive at times of rising interest rates.” See: Jobs report shows blowout 517,000 gain in U.S. employment in January Both the dollar and Treasury yields jumped in response to the jobs data, which helped to weigh on gold prices late last week, as the U.S. economy added more than half a million jobs last month, while previous monthly data were revised higher. In Monday dealings, the ICE U.S. Dollar Index
a gauge of the buck’s strength against a basket of rivals, was up 0.6% to 103.52. The yield on the 10-year Treasury note
was up 8.8 basis points to 3.621%.