Gold Futures Jump on Weaker-Than-Expected U.S. Economic Data

Wall Street Journal

3 days ago

1513 GMT – Gold futures rise after U.S. economic data came in softer than expected. Futures are up 1.6% at $3,402.30 a troy ounce. Nonfarm Payroll data showed just 73,000 jobs were added in July, below analyst expectations of 100,000. Even more suprising, revisions to May and June's data revised jobs down by a huge 258,000, ING analysts say in a note. This highlights that the jobs market has lost momentum even earlier than thought and will intensify pressure from President Trump for the Federal Reserve to loosen monetary policy, ING says. With tariffs set to eat into household spending and corporate profits, the case for cutting interest rates has been significantly strengthened, ING says. Lower interest rates typically benefit non-interest bearing bullion. ([e-mail])
1234 GMT – Base metal prices are mixed, with LME three-month copper flat on $9,603.0 a metric ton and LME three-month aluminum down 0.7% at $2,545.50 a ton. Metals have faced headwinds from various directions in recent days, Commerzbank analysts say in a note. China PMI figures were disappointing, Commerzbank says. Data across the board from the world's most important base metals market recorded significantly stronger declines than expected. At the same time, the Federal Reserve's Wednesday meeting surprised with a more hawkish stance on monetary policy easing than expected, the analysts add. This gave the U.S. dollar a boost, making it more expensive for international purchasers to buy dollar-denominated commodities. The reintroduction of the so-called U.S. reciprocal tariffs have further dimmed the outlook for metals demand, analysts add. ([e-mail])