Gold retakes $1,800 for strongest settlement since early September
Nov. 05, 2021 3:25 PM ET SPDR Gold Trust ETF (GLD), GDX, XAUUSD:CUR NGD, IAG, EGO, AEM, AUY, KGC, NEM, GOLD, IAU, SGOL, GDXJ, RING, NUGT, DUST By: Carl Surran, SA News Editor 36 Comments
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Gold prices reclaimed the $1,800/oz. level, shrugging off stronger than expected monthly jobs data, to post its highest settlement in two months.
December Comex gold ( XAUUSD:CUR) closed +1.3% at $1,816.80/oz., the highest most-active contract finish since September 3, capping a 1.8% gain for the week.
ETFs: GLD, IAU, SGOL, GDX, GDXJ, RING, NUGT, DUST
Gold mining shares sport broad gains today: GOLD +4.2%, NEM +2.3%, KGC +3.1%, AUY +3.3%, AEM +2.3%, EGO +3.1%, IAG +5.8%, NGD +5.6%.
Jobs data showed the U.S. creating more jobs than expected, but gold likely is "benefitting from a labor participation rate still holding steady below 62%; an overheated labor market would be about 1% higher," Jeff Wright, chief investment officer at Wolfpack Capital, tells MarketWatch.
"Despite the strong labor market report, it is not going to change what Federal Reserve Chair Jerome Powell signaled this week" - that inflation would prove "transitory" and likely not require a fast rise in interest rates - OANDA's Edward Moya says.
"Gold bulls seem to be drawing strength from the Fed's unhurried stance on raising interest rates," according to FXTM analyst Lukman Otunuga, adding that subdued Treasury yields are complementing gains.
Treasury yields fell following the strong jobs data, lowering the opportunity cost of holding non-yielding assets such as gold; the benchmark 10-year Treasury yield dropped below 1.46%. |
