Gold and Silver Recover After Lower Than Expected NFPGold reacted positively after the weak nonfarm payrolls data in the U.S. and it is recovering almost all its daily losses. Silver just exploded to the upside.
Metals such as gold and silver were trading negative on Friday on a mix of improving market sentiment and a profit booking movement ahead of the weekend. However, both metals reacted positively to the weaker than expected nonfarm payrolls data that was published today.
U.S. job market extends its weak note
The United States created 130K new jobs in August, below the 158K expected by market and the previous data of 159K. The last month was revised 5K down from 164K.
On the other hand, the wages growth rose 3.2% in August, above the 3.1% expected by the market. However, the number is a slowdown from July’s revised 3.3% data.
The unemployment rate remained at 3.7% another month, while the participation rate of the labor force rose to 63.2% in August from 63.0% in the previous month.
Gold recovers almost all it’s daily losses after NFP
Gold reacted positively after the weak nonfarm payrolls data in the U.S. and it is recovering almost all its daily losses.
Early in the day, the metal broke below the 1,520 area and fell to test the 1,500 critical level, but after the employment report, it jumped to be traded at 1,517. Currently, the unit is trading 0.16% negative on the day at 1,516.
On the week, the metal is ready to close its second negative week in a row as the unit has not been able to break above the 1,550 area. XAU/USD needs a run above the 1,527 to close positive on the period. Meanwhile, it is posting a 0.30% weekly decline.
Silver turns positive after NFP
Silver exploded after the nonfarm payrolls data on Friday and recovered all its previous daily losses to turn positive on the day at 18.65.
Previously in the day, silver was trading down amid improved risk sentiment and profit-taking ahead of the weekend. XAG/USD fell from the 18.60 area to trade at 18.00, its lowest level since August 27.
However, the U.S. employment report ignited the pair and sent it back to 18.70, where it is trading right now with a 0.35% daily gain.
On the week, silver is ready to close its fifth positive week in a row, thought the unit is trading well below weekly highs at 19.50.
Copper negative after testing the 2.6400
Copper is trading negative on Friday as investors are closing positions around the 2.6400 area before the weekend. After testing its highest price in over a month at 2.6420, XCU/USD is now 0.25% up on the day at 2.6180.
XCU/USD is ready to close its second positive week. The base metal is posting a 3.10% weekly gain right now. It would be its best week in over six months.