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New data revealing a particularly strong gain in US jobs for the month of May pushed the gold price down on Friday. Silver and Brent crude oil also fell, though copper on the LME managed to post a small gain.
New data revealing a particularly strong gain in US jobs for the month of May pushed the gold price down as investors responded to the increased likelihood of a Federal Reserve rate hike before the end of the year.
Specifically, the spot gold price fell to $1,163.95 per ounce on Friday. That’s a 1-percent decline from its price a day earlier and one of its lowest points since March 19, according to Reuters. Meanwhile, gold for August delivery dipped 0.64 percent, to $1,168.40, according to MarketWatch
“The break lower caused the metal to exit that $1,170-$1,220 trading range in which it had been confined for many weeks, making it more vulnerable to further declines towards $1,150 and $1,131,” ActivTrades Chief Analyst Carlo Alberto de Casa told the news outlet.
The same market pressure pushed down the silver price, which fell 0.4 percent on Friday to hit $16 per ounce, according to Reuters. Like gold, silver is susceptible to further losses if the Fed decides on an interest rate hike. A rise would compel investors to move away from safe-haven commodities that do not pay interest.
Meanwhile, the price of copper on the LME improved 0.1 percent during Friday trading to hit $5,919 per tonne, Reuters reported. Copper has struggled recently as investors prepare for a seasonal dip in Chinese demand. Friday’s gain was largely related to new LME stockpile data that indicates lower-than-anticipated copper supply. That may point to rising demand for the metal, and could boost the price further in the future.
“Our overall view is you’re not going to see a significant softening in copper market,” Nicholas Snowdon, a metals analyst at Standard Chartered, told Reuters.
For its part, COMEX copper for July declined 0.2 percent, to $2.682 a pound, according to MarketWatch.
Finally, the Brent crude price slipped 0.2 percent on Friday to reach $61.86 per barrel, according to the BBC. Investors remain concerned about oil market oversupply, and OPEC has encouraged member states to adhere to production ceilings in an effort to curb overproduction and stabilize prices.
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