Gold Attempts To Bounce Back

Gold futures headed modestly higher Monday as the dollar weakened on the heels of a rally in the British pound, offering a reason for the dollar-denominated precious metal to move up after posting a third-consecutive weekly loss.

The jobs report released Friday showed that the U.S. created 201,000 new jobs in August, while the unemployment rate remained at an 18-year low of 3.9%. The data were seen as supporting the Federal Reserve’s intention to hike interest rates in September, which already is expected, and possibly once more in December. The policy-setting Federal Open Market Committee is slated to convene its two-day gathering on Sept. 26.

The upbeat jobs figures had added further strength to the dollar Friday, “but some traders feel the gold market has pushed down far enough on this theme,” analysts at Zaner Precious Metals wrote in a Monday note.

December gold GCZ8, +0.07% rose $1.40, or 0.1%, to $1,201.80 an ounce. The precious metal logged a weekly decline of about 0.5% last week, enough to bump the string of weekly losses to eight in the past nine.

The ICE U.S. Dollar Index DXY, -0.30% a popular measure of the buck’s strength against a basket of six rivals, has gained 3.2% so far this year, creating a headwind for dollar-pegged commodities. It slipped in Monday action, however, ahead of key policy meetings for the Bank of England and the European Central Bank this week, with the British pound strengthening on hopes that a Brexit deal could be reached within six to eight weeks.

Meanwhile, Boston Federal Reserve President Eric Rosengren said in an interview with MarketWatch that he does not read much about a possible recession from the shape of the yield curve. Rosengren, who will vote on interest-rate policy next year, is a firm believer in more gradual rate hikes over the next year.

Atlanta Fed President Raphael Bostic is also slated to make remarks, speaking at an event in Georgia at noon Eastern Time.

In other metals trading, December silver SIZ8, +0.28%  was up 5 cents, or 0.4%, at $14.22 an ounce Monday after last week’s loss of 2.7%. December copperHGZ8, +0.27%  added 0.2% to $2.629 a pound after ending around 1.8% lower on the week.

October platinum PLV8, +1.37%  rose 2% to $796.30 an ounce, while December palladium PAZ8, +0.09%  added 0.8% to $976.10 an ounce.

Among the exchange-traded funds, the SPDR Gold Shares GLD, +0.00%  added less than 0.1% and the iShares Silver Trust SLV, +0.05%  gained 0.1%. The VanEck Vectors Gold Miners ETF GDX, -0.89%  fell nearly 0.5%.


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