Gold prices rose on Monday after a disappointing jobs report sent Treasury yields higher and the dollar soaring, which hurt gold as an alternative investment opportunity.
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Price action
- Gold for April delivery GC00, +0.45% GCJ23, +0.45% rose $9.50, or 0.5%, to settle at $1,885 an ounce on Comex. On Friday, prices for the most-active contract settled at their lowest level since Jan. 10 after falling 2.7%, the biggest one-day drop since June 17, 2021.
- March silver SI00, -0.11% SIH23, -0.11% increased by 6 cents, or 0.3%, to $22.47 per ounce after falling more than 5% last week.
- April platinum PLJ23, +0.32% advanced $8, or 0.8%, to $988 per ounce, while palladium for March delivery PAH23, -4.01% fell by $31.40, or 1.9%, to $1,587 per ounce.
- March copper HGH23, -0.39% was flat at $4.05 per pound.
Market drivers
Gold prices are falling sharply after the U.S. Department of Labor released its January nonfarm payrolls report, which showed that the American job market remains much stronger than economists had expected—and may complicate hopes for lower inflation rates in coming months.
The U.S. dollar and Treasury yields rose in response to the data, which weighed on gold prices—and helped push up energy shares as well (despite rising gas prices).
See: Jobs report shows blowout 517,000 gain in U.S. employment in January
The upsurge in crop yields and the strengthening dollar have caused gold prices to fall, though it remains above $1,960 per ounce.
“This decline could be an overdue correction following a three-month rally,” said Raffi Boyadjian, the lead investment analyst at XM.
The U.S. dollar climbed against other major currencies, and bond yields fell as investors flocked to riskier assets.
