GLDM - Gold recoups losses as dollar yields drop after jobless claims data

2023-06-08 17:45:43 ET

Gold futures rebounded Thursday from their lowest close since mid-March, helped by weakness in the U.S. dollar following U.S. data showing a surge in the number of people who applied for unemployment benefits to a nearly two-year high.

Following news that jobless claims rose 28K to 261K for the week ended June 3, the dollar fell to a near one-week low against other major currencies while benchmark U.S. 10-year Treasury yields fell.

Analysts say the rise in jobless claims could increase the likelihood that the Federal Reserve will not raise interest rates at its policy meeting next week.

Front-month Comex gold ( XAUUSD:CUR ) for June delivery closed +1.1% to $1,963.60/oz, while front-month June silver ( XAGUSD:CUR ) ended +3.5% to $24.264/oz, its best settlement value since May 10.

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

Citi lowered its 2023 forecast for average gold prices to $1,965/oz from $2,100 previously, saying fading concerns over the U.S. banking system and a possible debt default have hurt momentum for safe-haven assets such as bullion.

The bank is still bullish on gold over a 6-12 month time horizon, as credit tightening, commercial real estate risks and softer consumer spending likely will hurt U.S. growth in the medium term, which eventually should weigh on the dollar and Treasury yields.

More on gold and silver:

• Five Reasons Why Investors Should Have Some Exposure To Gold
• Gold: Inflation AndStandard Deviation
• Silver And The Popping of The Debt Bubble

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