- Consecutive Positive Days for Gold
- Key Mark in Sight Ahead of Jobs Data
- Other Commodities Remaining Largely Flat
It has been a relatively positive week as far as commodities news goes for the gold market. The precious metal approaches the end of the week and the early trading on the back of a third consecutive positive day. This is healthy momentum for gold with NFP numbers due in the US this afternoon that will provide the key for the rest of the days’ trade and sentiment moving into next week. It is not expected there will be any surprises large enough to really rock the market though most commodities, alongside gold, have enjoyed a timid opening to the European session.
Strong Week Looks to End on High
From last week moving into the beginning of this one, the gold market had endured some challenges as it picked itself up from 2-month lows of close to $1750. Following a very strong end to this week, that number now seems like a distant memory as the market tries to break out higher again. The key driver behind that will not only be the NFP jobs data but also with a keen eye on the COVID-19 situation.
The pick-up in cases particularly of the Delta variant especially in the US and other major economies has spurred on the traditional safe-haven value of gold. This comes at the expense of some more volatile, riskier asset classes and is also reflected in the movements as the treasury yields continue to drop in the US. The has allowed Dollar strength to largely continue which is seen as a broad positive for gold.
Pivotal Jobs Data to End the Week
Non-Farm Payroll numbers are set to come out today in the US with analysts anticipating the number to be around 690,000 when it comes to new jobs added. This would be well up on the previous month’s number and signal a strong return to work within the economy. This data could impact gold in a couple of different ways.
Presuming the number comes in higher than expected, this would likely heap pressure on gold markets and possibly driving them back down below where they started the week. A disappointing number conversely would allow the precious metal to continue its move upwards by dampening the expectations of many.
Other Markets Remain in Limbo
While the gold price continues to look ahead with optimism, other markets are more stagnant this morning. Most commodities are remaining within range. This includes oil which peaked to a more than 2 year high last week above $76 per barrel.
The price remains high around $75 but fluctuating with OPEC yet to agree on output as concerns continue around the COVID-19 variant and hamper any real progress. This has been used as an opportunity by some preferring to exit the market at these levels. The key here will be an OPEC+ agreement on output.