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Metals Stocks: Gold, silver end lower after September jobs report, but log back-to-back weekly gains


Gold and silver futures finished lower on Friday following the U.S. September jobs report that still shows signs of rising inflation, but prices for both metals held onto gains for the week.


Gold futures

for December delivery fell $11.50, or 0.7%, to settle at $1,709.30 per ounce on Comex. Prices for the most-active contract ended more than 2.2% higher for the week, according to Dow Jones Market Data.

December silver futures

fell 41 cents, or 2%, to $20.255 per ounce, with prices still up 6.4% for the week.

December palladium

declined $84.20, or 3.7%, to $2,191.30 per ounce, but up 0.4% for the week, while January platinum

fell $3.90, or 0.4%, to $917.90 per ounce, posting a weekly rise of 6.8%.

Copper futures

for December fell 6 cents, or 1.7%, to settle $3.3865 per pound, for a weekly loss of 0.8%.

What’s happening

The U.S. saw an increase of 263,000 in new jobs in September, historically strong, but the smallest increase in hiring since April 2021, government data revealed on Friday. Economists polled by The Wall Street Journal had forecast 275,000 new jobs.

Market estimates had ranged anywhere from 248,000 to 275,000 jobs so gold was under pressure as some saw the data as better than expected, Jeff Wright, chief investment officer at Wolfpack Capital, told MarketWatch.

In a daily market update, Jim Wyckoff, senior analyst at Kitco, also said details from the report showed the labor market is in better shape than the headline number might suggest, giving the Fed plenty of leeway to continue hiking interest rates without fearing that they could damage the economy.

The report “did show good internals that do not strongly suggest the U.S. economy is headed for a recession,” Wyckoff wrote, pointing to the lower unemployment rate at 3.5% as one example.

Another data point in the report was average hourly earnings up 5% year over year comparison, said Wolfpack Capital’s Wright, so “in relation to gold, the data was inflationary.”

The expectation is for another 75 basis point rate increase in November from the Federal Reserve, “with no indication of a pause in the near future,” he said.

Following Friday’s U.S. economic data, the dollar and Treasury yields climbed, pressuring prices of gold.

The ICE U.S. Dollar Index
a gauge of the greenback’s strength against a basket of rivals, rose 0.3% to 112.57, while 10-year Treasury yields

added 4.5 basis points to 3.867%.

“” My bias is negative on gold at the moment and with rates rising, I do not see a fundamental rationale to buy.” ”

— Jeff Wright, Wolfpack Capital

Also see: What’s in store for natural gas, oil and iron ore in the fourth quarter?

Gold futures still ended the week higher, with “some safe haven buying,” but that’s not likely a trend which will continue, said Wright. “My bias is negative on gold at the moment and with rates rising, I do not see a fundamental rationale to buy.”

: If the labor market weakens, older workers will be among the hardest hit

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