Gold futures ticked higher early Friday as investors eagerly awaited the release of the August jobs report.
Price Action
- Gold for December delivery (GC00, +0.28% GCZ23, +0.28%) rose by $4.70, or 0.2%, to $1,970.60 an ounce on Comex.
- December silver (SIZ23, +0.82%) was up 21.8 cents, or 0.9%, at $25.03 an ounce.
Market Drivers
According to Dow Jones Market Data, the most-active contract experienced a loss of 2.2% for August.
Gold was given a boost earlier this week as data revealed investors scaling back expectations for a further increase in Fed interest rates, causing the U.S. dollar and Treasury yields to pull back. A stronger dollar can make gold more expensive for users of other currencies, while higher bond yields increase the opportunity cost of holding assets that do not generate a yield.
Tim Waterer, chief market analyst at KCM Trade, noted that if there is further evidence of a cooling U.S. jobs market, it could lead to more positive movement in the price of gold.
August Jobs Report
The highly-anticipated August jobs report, scheduled for release at 8:30 a.m. ET, is expected to set the tone for gold and other markets on Friday. Bulls are eagerly seeking confirmation that a tight labor market is exhibiting signs of cooling, potentially allowing the Fed to keep rates unchanged.
Based on a poll of economists conducted by The Wall Street Journal, it is projected that the U.S. will add 170,000 jobs in August, a decrease from 187,000 in the previous month. In contrast, the U.S. added an average of 287,000 new jobs per month during the first four months of the year.
