Gold futures edged higher on Thursday as the dollar remained stable and bond yields edged lower, offering some support for precious metals. So far this week, Gold has generally traded sideways. Analysts say investors are waiting for the U.S. August jobs report on Friday to determine the Federal Reserve’s and bullion’s next steps. In a daily research report, Craig Erlam, senior market analyst at Oanda, stated that Gold has been stabilizing recently, as traders await Friday’s employment report before taking the next leap.
Following a 0.1 percent fall on Wednesday, December gold GCZ21, -0.08 percent traded $2.30, or 0.1 percent higher, at $1,818.30 an ounce. Gold trading took place against a backdrop of a flat dollar for the session. The ICE U.S. Dollar Index DXY, 0.01 percent, a measure of the greenback’s strength versus a half-dozen currencies, was little changed at 92.42. The 10-year Treasury note yield TMUBMUSD10Y, 1.288 percent, was at 1.29 percent, down from about 1.31 percent on Wednesday.
A disappointing payrolls data might add to the dollar’s woes and send Gold beyond $1,833, where it has often met resistance in recent months, Erlam wrote. Last Friday at the Jackson Hole central-bankers symposium, Fed Chairman Jerome Powell’s statements showed that he supports slowing the pace of bond purchases this year.
According to commodity analysts, the extent of the Fed’s accommodative withdrawal might influence gold prices.
Oil Edges Higher
Oil prices are slightly higher on Thursday after a brief drop. This happened as OPEC+ reiterated its commitment to a monthly rise of 400,000 barrels per day, despite U.S. pressure to increase the quantity. The meeting was extraordinarily brief, lasting only 30 minutes before reaching an agreement.
Previously, these meetings had dragged on for days, if not weeks, before a deal has reached, so it was surprising to see the group agree so swiftly. Nonetheless, the status quo expect given the unclear forecast, high price, and inventory development. The White House was never going to have much luck. The price reduction didn’t continue long. The EIA reported a 7.2 million barrel drop in stockpiles, well-exceeding predictions of 2.5 million. WTI is aiming for USD 70 once more. This is a target it missed earlier this week following a robust comeback from its summer lows.