09/02/2024: This Week in Gold with Market Updates:
Price Action:
Gold Price:
Gold opened the week trading at $2,040 an ounce, after closing the previous week $21, or 1%, higher. The daily graph shows gold falling throughout the week and highlights the fact that gold closed lower 3 out of the 4 completed trading days. At the time of writing, gold is on track to close lower 4 out of 5 trading days this week.
On Monday, price had fallen 1.2% to $2,016 by mid-afternoon. Price experienced a slight rebound during the final hours of trading, closing the day at $2,025. Services PMI came in weaker than forecast, which is generally a bearish signal for the DXY. This may have contributed to gold’s late comeback on Monday evening.
Tuesday saw price consolidate in the morning before recovering some of the losses from Monday. Price rose 0.5% to $2,037 by Tuesday evening before consolidating again to close the day at $2,036. This was in response to a pullback in the DXY and Treasury yields. Investors were also eagerly anticipating remarks from FED officials later in the week, which would shed light on the future of interest rates.
Price did not fluctuate much on Wednesday, trading within a narrow range for much of the day. Gold was seen to move sideways throughout the day and ultimately closed the day $1 lower at $2,035.
On Thursday, gold was seen to consolidate for much of the day again. Price edged lower to $2,034. Price did experience a large fall around midday, falling 0.7% in the space of 3 hours. This was mainly in response to a strengthening dollar and heightened Treasury yields as the hope for early interest rate cuts from the FED dwindled. A lower than forecast jobless claim report also contributed to the fall in price. Price did recover and made back the losses that it had incurred during the day to ultimately close $1 lower. This could be, in part, due to Russian President, Vladimir Putin’s, interview with Tucker Carlson on Thursday evening. This meeting would have boosted safe-haven demand amid geopolitical tension.
On Friday, price again was seen to consolidate. At the time of writing, price is trading at $2,022 an ounce. This is a 0.9% decline from the previous week’s trading session.
Silver:
Silver opened the week trading at $22.69 an ounce. Silver, at the time of writing, is on track to have less losing days than gold this week. Price closed lower 2 out of the 4 completed trading days. However, it is currently on course to close 3 out of 5 days lower.
Price fell 1.5% on Monday to close the day at $22.35.
On Tuesday, price regained some of the losses that it experienced on Monday, climbing $0.08 an ounce to close the day at $22.43.
Price fell to $22.22 on Wednesday, a 0.9% decline.
On Thursday, safe-haven demand boosted the price of silver, similarly to gold. Price rose to $22.58 an ounce, which was 1.6% gain.
At the time of writing, silver is trading at $22.42 an ounce. This is a 1.2% decline from the previous week’s trading session.
Market Updates:
Monday: Services PMI
Services Purchasing Managers Index data was released on Monday. This is a report which surveys over 400 executives in private sector companies. It helps investors to understand business conditions. This month’s figure came in at 52.5 which was below the forecasted 52.9. Although this figure was above 50, signalling improvement, it was lower than forecast which is generally a bullish signal for DXY. As gold has an inverse relationship with DXY, gold moves lower when DXY moves higher.
Thursday: Initial Jobless Claims:
This metric measures the number of people who filed for unemployment insurance for the first time during the past week. This reading of 218k came in lower than the forecasted figure of 221k. This is generally a bullish signal for DXY, which works inversely against gold.
Putin Interview:
Also on Thursday was Vladimir Putin’s interview with Tucker Carlson.
Putin spoke about the ongoing conflict between Russia and Ukraine.
There was little indication that the war is near over, which caused a boost in safe-haven demand for gold.
