AGE Daily Gold Update

AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.

7/3/2024: Gold surges to 1-month high

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold surged 1.6% to a one-month high near $2,360 as soft employment and ISM data lifted expectations of a Fed rate cut in September, pressuring Treasury yields and the dollar. Silver jumped 4.1% to finish at $30.55 an ounce.

First-time jobless claims rose 4,000 to 238,000 last week, hovering near a one-year high, while the total number of people on unemployment rose to the highest level in 30 months. Considered a proxy for layoffs, jobless claims are a weathervane for the strength of the economy.

In another sign of a cooling labor market, ADP reported private payrolls added just 150,000 new jobs last month, the smallest increase in five months. Fridays release of the governments nonfarm payrolls report should add further clarity on job growth.

The Institute of Supply Management said the US services index sank to a four-year low of 48.8% in June as new orders and employment both fell sharply. It was the biggest contraction since the pandemic. Roughly 70% of Americans are employed in service businesses.

The ISM manufacturing survey was also negative in June, marking three straight months of contraction.

Benchmark 10-year Treasury yields retreated on the downbeat data as traders increased their bets that the Fed will cut rates in September. Fed funds future trading puts the odds at 68% for a quarter-point decrease with a second coming in December. Falling yields lift gold by decreasing the opportunity cost for holding it instead of bonds.

Tracking lower with yields, the dollar lost 0.5% against major rivals, boosting gold and other commodities by making them less expensive in other currencies.

Platinum dipped 0.2% while palladium rose 1.4%.

At the New York spot close: gold surged $36.80 to $2,359.80; silver jumped $1.20 to $30.55; platinum dipped $1.60 to $1.002; and palladium added $14, to $1,035.30 an ounce.