Armfalcon.com, CHICAGO — Gold prices recovered in late trading Tuesday (4/4/2023), extending gains for the second day in a row and holding above the psychological $2,000 level. The gains were driven by a weaker US dollar amid signs that the job market may be starting to cool.
The most-active gold contract for delivery in June on the Comex division of the New York Exchange, jumped $37.80, or 1.89 percent, to close at $2,038.20 an ounce, after touching a session high of $2,043.40 and a low of $2,043.40. 1,994.00 US dollars.
The US dollar weakened in trading Tuesday as the latest US data stoked concerns over an economic slowdown. The dollar index that measures the greenback against six other major currencies was down 0.5 percent to 101.5858.
Economic data released on Tuesday further supported gold. The US Department of Labor reported that US job vacancies fell from 10.6 million in January to 9.9 million in February, the fewest since May 2021 and a sign that the labor market may be starting to cool.
The US Commerce Department reported that US orders for manufactured goods fell 0.7 percent in February, the third decline in four months. Economists had forecast for a 0.6 percent decline.
“Gold’s latest rise is a sign that traders are not moving away from their view that US interest rates are at or near their peak and expect to fall this year,” said Craig Erlam, analyst at online trading platform OANDA.
“The move should bring the record high around $2,070 into sharp focus, but that may be contingent on future rate expectations being pared down further and some risk aversion in the market.”
The Fed has added 475 basis points to US interest rates over the past 13 months, bringing them to a peak of 5.0 percent.
Another precious metal, silver for delivery in May, was up 1.08 dollars, or 4.50 percent, to close at 25.101 dollars per ounce. Platinum for July delivery jumped $32.60, or 3.27 percent, to settle at $1,029.00 an ounce.
source : Between