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Metals Stocks: Gold climbs as investors cast a wary eye on upbeat U.S. jobs data as cases of COVID-19 continue to rise

Metals Stocks

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Gold futures moved higher Thursday as investors showed concern over the economic impact of the rising numbers of new COVID-19 cases in the U.S. and around the world despite improving economic data.

A drop in the U.S. unemployment rate and a better-than-expected job growth in June only briefly managed to pull prices lower in earlier dealings.

The U.S. added 4.8 million jobs in June and the unemployment rate fell for the second straight month to 11.1%. The increase in new jobs easily exceeded the 3.7 million forecast of economists polled by MarketWatch. However, the economy’s recuperation from the coronavirus might already be suffering a setback from a renewed surge in COVID-19 cases.

“Investors do not largely believe that the unemployment rate is going to fall as rapidly as we have seen in the past two months,” Naeem Aslam, chief market analyst at AvaTrade told MarketWatch.

New U.S. coronavirus cases hit a single-day record on Wednesday of more than 52,000 while the global total reached 2.64 million and death toll of 127,681.

Against that backdrop, August gold

picked up $4.10, or 0.2%, at $1,784 an ounce, following a 1.1% decline on Wednesday. For the holiday-shorted week, prices based on the most-active contracted traded around 0.2% higher than last Friday’s settlement.

Read:Is the stock market closed Friday? For July 4th, here’s everything investors need to know about trading hours and closures

In the longer run though gold may also receive support from easy monetary policy after the Federal Reserve’s most recent monetary-policy meeting revealed that officials noted that the economy is likely to need support from highly accommodative monetary policy for “some time.”

Read:Gold posts largest quarterly gain in 4 years; talk of record prices by year-end grows

Meanwhile, September silver

rose 5 cents, or 0.8%, at $18.365 an ounce after gold’s sister metal fell 2.3% in the prior session. For the holiday-shortened week, silver looked to finish about 1% higher than last Friday’s settlement.

September copper

traded at $2.748 a pound, up 0.5%. October platinum

was down 0.07% at $833.80 an ounce and September palladium

shed 0.1% to $1,928 an ounce.

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