Gold Prices Remain Positive Amid Market Skittishness and Weak Dollar

Strategic Insights -

Gold futures remain in positive territory amid general market skittishness and a weaker U.S. dollar, despite a stronger-than-expected U.S. jobless claims reading. The metal's price was recently up $2, or 0.2%, at $1,250.10 an ounce on the Comex division of the New York Mercantile Exchange. Analysts attribute the positive tone to a weaker dollar, which makes gold less expensive for buyers using other currencies and lends support to prices. The U.S. jobless claims data, which showed a decline of 6,000 to 472,000, has also contributed to gold's relative stability, as investors remain wary ahead of the closely followed U.S. non-farm payrolls report on Friday.

Key Takeaways:

  • Gold futures are trading at $1,250.10 an ounce, up $2, or 0.2%, on the Comex division of the New York Mercantile Exchange.
  • The weaker U.S. dollar has contributed to gold's positive tone, making it less expensive for buyers using other currencies.
  • Analysts predict a weaker dollar will continue to support gold prices, as it is often used as a safe-haven investment.
  • The U.S. jobless claims data showed a decline of 6,000 to 472,000, which has contributed to gold's relative stability.
  • Investors are wary ahead of the U.S. non-farm payrolls report on Friday, which is expected to show a drop of 110,000.
  • Standard Bank analyst Leon Westgate noted that unease ahead of the non-farm payrolls data is picking up, prompting some additional safe-haven buying.

Statistics:

  • Gold futures price: $1,250.10 an ounce
  • Increase in gold price: $2
  • Potential drop in U.S. non-farm payrolls: 110,000
  • Previous week's jobless claims: 478,000 (revised upward from 473,000)
  • Current week's jobless claims: 472,000

Sources:

  • Dow Jones Commodities News via Comtex
  • Standard Bank analyst Leon Westgate
  • Dow Jones Newswires
  • New York Mercantile Exchange (Comex)