Gold News & Info

Source:Matt Warden, American Gold Exchange

AustinGold futures drifted 0.2% lower to end the day at $1,811.50 on very low volume as traders await release of the August nonfarm payroll report tomorrow morning. In recent weeks, many Federal Reserve officials have said recovery in the labor market would determine when they would slow asset purchases, increasing the importance of this month’s and next month’s payroll report.

U.S. jobless claims dropped to 340,000 last week, the lowest level since the March 2020 pandemic lockdowns were enacted. Continuous claims also fell to a new pandemic low of 2.748 million, reflecting improving labor market conditions. Nevertheless, around 10 million more people are currently receiving unemployment benefits than before the pandemic began and initial claims are running about 50% higher than the pre-pandemic average of 220,000 claims per week.

Factory orders increased for the third month in a row, bumping up 0.3% in July after sharp increases of 2.3% and 1.5% in May and June, respectively. Orders for non-durable goods advance 0.9% while durable goods declined 0.1%. Manufacturers reported strong customer demand, but persistent labor and supply shortages have slowed production, in turn hampering economic output and lifting inflation.

Highlighting how supply shortages are buoying inflation, today’s U.S. automobile sales report showed a 33.1% plummet in August sales compared to a year prior due mainly to semiconductor chip shortages. Sales fell to just 13.09 million vehicles, well below the recent peak of 18.5 million vehicles in April. The lack of inventory sent new car prices to an all-time high over $42,000 and used car prices to a new record average high of over $25,000.

Ahead of tomorrow’s payrolls report, the U.S. dollar slipped 0.2% to 92.25 on the U.S. dollar index while benchmark U.S. 10-year Treasury yield were unchanged at 1.3%.

The other precious metals were down today, with silver giving back 1.2%, platinum slipping 0.5% and palladium continuing its recent selloff to finish the day 1.6% lower.

At the Comex close: December gold settled down $4.50 to $1,811.50; December silver lost 30 cents to close at $23.92; October platinum dipped $5.40 to $994.20; and December palladium fell another $41.10 to $2,400.40 per ounce.