Connect with us

Commodities News

Gold Price Slides Ahead of NFP Numbers

mm

Published

 on

  • 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.

Anthony is a financial journalist and business advisor with several years’ experience writing for some of the most well-known sites in the Forex world. A keen trader turned industry writer, he is currently based in Shanghai with a finger on the pulse of Asia’s biggest markets.

Newsletter Subscription

Advertiser Disclosure: Securities.io is committed to rigorous editorial standards to provide our readers with accurate reviews and ratings. We may receive compensation when you click on links to products we reviewed.

ESMA: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Investment advice disclaimer: The information contained on this website is provided for educational purposes, and does not constitute investment advice.

Trading Risk Disclaimer: There is a very high degree of risk involved in trading securities. Trading in any type of financial product including forex, CFDs, stocks, and cryptocurrencies.

This risk is higher with Cryptocurrencies due to markets being decentralized and non-regulated. You should be aware that you may lose a significant portion of your portfolio.

Securities.io is not a registered broker, analyst, or investment advisor.