Weekly Market Report | 06/08/2023

Gold ends lower as US Treasury yields surge to 9-month highs, focus on US inflation data

Indications only | Closing prices are bids | Prices & Charts  : Trading View | Market Research Refinitiv | See disclaimer below

Summary

On Monday in Asia, gold largely traded between $1,960 and $1,954. However, with the European market's opening, it witnessed a sharp dip to the day’s low of $1,951. Subsequently, the metal embarked on a sustained rally in New York, reaching a weekly high of $1,972 on modest trading volume. By the day's end, the yellow metal eased, concluding at $1,966 with a 0.36% gain. Remarkably, for the month of July, it increased by 2.3%, marking its best performance in four months. In contrast, industrial precious metals started the week robustly. This boost came as China announced fresh policy guidelines, targeting an uptick in economic activity. Silver saw an appreciation of 1.68% to settle at $24.75. Platinum too climbed by 1.92%. Meanwhile, palladium surged 3.23%. Tuesday's early Asian trading saw gold touch its daily high of $1,966. Yet, this peak was followed by relentless selling pressure, leading it to fall to a low of $1,942 by the day's end. This decline was attributed to the rallying United States Dollar (USD) and the surge in US Treasury yields, especially with the anticipation of the US Non-Farm Payrolls report set for a Friday release. The day concluded with gold down by 1.12% at $1,944. Simultaneously, silver dropped 1.82% to $24.30, platinum depreciated by 2.3% to $935, and palladium decreased by 3.44%, finishing at $1,236. Wednesday witnessed gold rally to $1,953 due to physical bargain hunting in Asia. The metal remained stable in Europe but faced selling pressure in early New York trading. A significant private jobs report catalyzed a spike in the USD and US 10-year Treasury yields, the latter reaching its highest since November 2022. This led gold to dip to $1,934, down 0.46% by day's end. Furthermore, silver tumbled 2.39% to $23.72, while platinum fell 1.07%. Contrarily, palladium ascended slightly, up by 0.24% at $1,239. On Thursday, global bullion traders exhibited a cautious stance, resulting in gold posting its narrowest range for the year. Amid modest volumes, investors remained wary, primarily due to Friday’s anticipated US employment report. Gold ended the day almost unchanged at $1,934, while silver decreased by 0.63% to $23.57. Platinum slipped 0.86% to $917, but palladium rose by 1.05% to $1,252. Friday saw a continued sideways movement in gold's trading pattern, constrained between $1,932 and $1,938 in both Asian and European markets. The highly anticipated US jobs data had traders on their toes. While the Non-Farm Payrolls were slightly below expectations, the unemployment rate dropped by 0.1% to 3.5% for July. Gold’s price responded dramatically, plunging to the week's lowest at $1,925 but then reversing sharply to $1,946, eventually settling at $943. Over the week, silver dropped 2.88% despite a 0.3% rise on Friday. Platinum increased by 0.87% on Friday but fell 1.49% weekly. Palladium, on the other hand, climbed by 1.05% over the week. Looking into the upcoming week, gold is expected to remain between $1,930 and $1,950 for the initial three days, especially with no major US economic reports on the horizon. However, trading is likely to intensify from Thursday with the release of the latest US consumer inflation data and producer prices on Friday. This could lead to a trading range of $1,910 to $1,970. Silver might oscillate between $23 and $24. Platinum seems bounded by support at $900 and resistance at $1,000. As for palladium, its movements remain unpredictable, dancing to its unique rhythm.

Gold Chart ($/oz)

Silver Chart ($/oz)

Platinum Chart ($/oz)

Palladium Chart ($/oz)

This document is issued by Value Trading BV. While all reasonable care has been taken in preparing this document; no responsibility or liability is accepted for errors of fact or for any opinion expressed herein. Opinions, projections and estimates are subject to change without notice. This document is for information purposes only and for private circulation. It does not constitute any offer, recommendation or solicitation to any person to enter into transaction or adopt any hedging, trading or investment strategy, nor does it constitute any prediction of likely future movements in rates or prices or any representation that any such future movements will not exceed those shown in any illustration.