Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold slid 0.9%, surrendering most of yesterdays gains to close under $2,326, as tumbling oil prices hurt the commodities sector, spurring traders to take profits ahead of Fridays important nonfarm payrolls report. Silver lost 3.8% to end at $29.49 an ounce.

Oil extended this weeks selloff to five straight sessions, with US benchmark WTI losing another 1.9% to under $723 per barrel, its lowest finish in four months. The losses were triggered by a decision by OPEC+ to start reversing production cuts later this year. In addition, a slowing US economy raised concerns about demand.

Gold often trades in sympathy with oil as a hedge against energy-related inflation.

In another sign of a cooling labor market, the number of job openings sank in April to the lowest level in three years, according to the Labor Department. The so-called Beveridge Curve, which plots the relationship between job opening and the unemployment rate, has fallen to pre-Covid levels for the first time since the pandemic began.

Lowering inflation by cooling off the red-hot job market through high interest rates has been a primary focus of the Feds policy of high interest rates. Following Aprils slowdown in hiring, todays data on job openings, and last Fridays modest PCE print on inflation, a weak nonfarm payrolls report on Friday could motivate the Fed to cut rates sooner.

Benchmark 10-year Treasury yields retreated under 4.4% on the soft data and shifting rate view. The dollar dipped slightly, surrendering early-session gains after the release of the job-openings data.

Platinum fell 2.6% while palladium picked up 1.2%.

At the New York spot close: gold dropped $21.10; silver shed $1.15 to $29.49; platinum lost $26.90 to $995.90; and palladium rose $11.10 to $910.30 an ounce.