GLDM - Gold clings to weekly gain after falling Friday on mixed jobs data

2023-06-02 17:45:55 ET

Gold eked out its first weekly gain after three consecutive declines, as hotter than expected U.S. jobs data lifted Treasury yields and a higher unemployment rate sparked renewed hopes the Federal Reserve would pause its path of interest rate hikes.

Riskier assets were back in vogue Friday as investors cheered the passage of a debt ceiling bill that averts a U.S. default, but the biggest driving factor was May's jobs report, which showed U.S. employers added a seasonally adjusted 339K jobs, far more than expected.

The data also showed a moderation in year-over-year average hourly earnings growth and a bump up in the unemployment rate to 3.7% from 3.4%, which helped push recession and rate hike fears to the backburner, at least for now.

U.S. Treasury yields rose, with the two-year note surging 18 basis points to 4.51% and the benchmark 10-year yield adding 8 basis points to 3.69%, and the dollar ticked higher, making greenback-priced, zero-interest-bearing gold bullion less attractive.

Front-month Comex gold ( XAUUSD:CUR ) for June delivery closed -1.3% Friday to $1,952.40/oz to cap a 0.4% gain for the holiday-shortened week, while Comex June silver ( XAGUSD:CUR ) settled -0.9% Friday to $23.643/oz, adding 1.7% for the week.

ETFs: ( NYSEARCA: GLD ), ( GDX ), ( GDXJ ), ( NYSEARCA: IAU ), ( NUGT ), ( PHYS ), ( GLDM ), ( AAAU ), ( SGOL ), ( BAR ), ( OUNZ ), ( SLV ), ( PSLV ), ( SIVR ), ( SIL ), ( SILJ ), ( SLVP )

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