- Price Stays Near Weekly Low Point
- Tapering Concern and US Data in Focus
- Other Precious Metals Also Dip
In commodities news, the price of gold has dipped significantly toward the $1800 mark where it remains as the NFP job numbers are awaited later today. Analysts say the precious metal could be entering a challenging period with COVID-19 cases still a concern but also with increased chatter around tapering from the Fed. The data to come later today on payroll numbers could prove key to determining the next moves. Prices for silver were also below $26 while platinum has hit a new 7 month low coming in under $100 per ounce.
Weekly Low as Gold Drops Back
In recent weeks, the progress in the price of gold has been positive all around. A slightly weakening Dollar and generally optimistic market sentiment had sent the precious metal higher week on week. This has not been the case toward the end of this week as the price and precious metals traders becoming jittery. Early trading in Europe has seen gold trade around $1800 as traders remain cautious with several market analysts predicting at least short-term moves lower.
The weekly low comes as the US still struggles to deal with a COVID case resurgence. The highest numbers in several months related to new cases have been posted, with over 100,000 nationwide. If this increases the strength of the Dollar further, then it can be expected to hamper gold prices and lead to further volatility in the market.
Fed Policy and Job Numbers Key
As far as gold prices go, the important news of the day will be the NFP payroll numbers. Analysts expect these numbers to show a total of 845,000 jobs added in the previous month, but there is less certainty than usual around this number with a variety of targets offered. This uncertainly has been reflected in precious metal prices as all remain flat at best.
Traders appear to be simply waiting to hear the latest figures, while concerns also continue to mount over Fed policy and in particular tapering which is expected to come at some point. This point may now be closer than many expected as rumors continue to swirl. Any policy comment in this regard from the Fed is also sure to move prices alongside the key numbers of the day.
Caution Felt Across the Board
It has not only been gold prices that have seen a notable dip in recent days. The uncertainly surrounding precious metal prices have also spread to silver, platinum, and palladium. All have dipped at least a little in recent days trading.
Silver prices are hovering just above $25 marking a drop of over $1 in the last seven days. Palladium meanwhile is trading flat for the day. The big mover in precious metals though has been platinum with a significant drop below $1,000. At the time of writing it trades at $999 an ounce, not far above its yearly low.