On January 5th, Gold futures on the COMEX division of the New York Mercantile Exchange fell due to better than expected U.S. job data. The most active gold contract for February delivery fell by 20 cents, or 0.01 percent, to close at 2,049.80 U.S. dollars per ounce.
The U.S. Labor Department reported that U.S. employers added 216,000 jobs in December, surpassing economists’ forecasts of a 170,000 gain. The unemployment rate remained at 3.7 percent.
The strong jobs data led to decreased odds of aggressive rate cuts by the Federal Reserve, which negatively impacted market bets on the Fed cutting rates in early 2024. This in turn dampened gold prices.
Other economic data released on Friday was mixed. The U.S. Commerce Department reported that U.S. factory orders surged by 2.6 percent in November after a 3.4 percent tumble in October. Economists had expected a 2.1 percent increase. The Institute for Supply Management (ISM) Services Index came in at 50.6 percent in December, down 2.1 percentage points from November, but still indicating growth in the sector.
The U.S. consumer price index and producer price index are set to be released next week, on Thursday and Friday, respectively. Silver for March delivery rose 12.80 cents, or 0.55 percent, to close at 23.315 dollars per ounce. Platinum for April delivery also rose by 5.50 dollars, or 0.57 percent, to close at 971.80 dollars per ounce.
