Gold prices closed higher for the third session this week after initially falling on the release of the US labour report.
Gold for December delivery on the Comex division of the New York Mercantile Exchange rose $4.0 to settle at $1,094.10 per ounce. Gold climbed three out of five sessions this week, but still ended the week lower.
“Just when the market looks like it will break lower (with the whole world betting it will go down) it doesn’t; yet every time it gets within a whisker of the large amount of probable stops through $1,100 to $1,125 it fails and meets steady supply,” Triland Metals said.
The July US labour report was steady, yet unspectacular, with non-farm employment showing 215,000 added jobs, a tad below the forecast of 220,000. The unemployment rate was steady at 5.3 percent, while average hourly earnings month-over-month was in-line with projections of a 0.2 percent bump.
As one of the last significant data points before the Federal Open Market Committee (FOMC) reconvenes in mid-September, the report took on addes weight and didn’t discourage the growing interest rate hawks.
US interest rates have fallen precipitously since 2006 and a rate increase would signal to market participants that the Fed is seeing enough growth to ignore a lack of inflation.
Federal Reserve chairwoman Janet Yellen has said that any action will be undertaken at a gradual pace.
Turning to US equities, the Dow Jones industrial average and S&P were each down 0.5 percent, while the dollar was last 0.4 percent softer at $1.0970 against the euro.
As for other precious metals, Comex silver for September settlement rose 10.3 cents to $14.780 per ounce. Trade has ranged from $14.565 to $14.990.
Platinum for October delivery dipped $4.80 to $960.80 per ounce, while the most actively traded palladium contract was at $598.40 per ounce, down $1.40.
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