New York gold futures ended lower last night (August 6) as investors sold gold as a safe haven asset. After the United States released its employment data for July, the increase was more than expected.
The COMEX (Commodity Exchange) gold contract will be delivered in December. It fell $45.8, or 2.53 percent, at $1,763.1 an ounce and tumbled 2.97 percent this week, its biggest weekly drop since the week ending June 18.
Silver metal contract delivered in September It fell 96.6 cents, or 3.82 percent, at $24.326 an ounce.
Platinum contract delivered in Oct. It fell $33.5, or 3.33%, at $972.2 an ounce.
The palladium contract was delivered in September. It fell $25, or 0.9%, to close at $2,630.10 an ounce.
Investors sell gold contracts as a safe haven asset. After the US released strong economic data. The US Department of Labor reported that Non-farm payrolls rose 943,000 in July. That was higher than analysts’ estimates of 845,000 jobs from 938,000 in June.
The unemployment rate fell to 5.4 percent in July, below analysts’ forecast of 5.7 percent after hitting 5.9 percent in June.
The US Department of Commerce reported that Wholesale inventories rose 1.1% in June, month-over-month. After surging 1.3 percent in May, sales in the wholesale sector jumped 2.0 percent in June after a 0.8 percent gain in May, and business owners will spend 1.22 months in the process. Sold out of stock, down from 1.23 months in May.
The dollar’s appreciation is also a negative factor for the gold market. Because the gold contract, which is priced in US dollars, is It is more expensive and less attractive to investors holding other currencies.
The dollar index, which measures the dollar’s movements against six major currencies in a basket of currencies, rose 0.58% to 92.7918.
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