Gold futures show marginal increase on negative economic data

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15th September 2023 – (Chicago) In a response to discouraging economic indicators, gold futures on the COMEX division of the New York Mercantile Exchange experienced a slight rise on Thursday. The most active gold contract for December delivery saw a modest increase of 0.30 U.S. dollars, or 0.02 per cent, concluding the trading session at 1,932.80 dollars per ounce.

The U.S. Labor Department released a report on Thursday, revealing that the U.S. producer price index registered a seasonally adjusted 0.7 per cent growth in August. This figure exceeded the estimated 0.4-percent increase and marked the largest monthly gain since June 2022.

According to the U.S. Labor Department, jobless claims in the United States rose by 3,000 to 220,000 for the week ending 9th September. However, the four-week moving average of claims, which offers a less volatile measure, decreased by 5,000 to 224,500.

Additionally, the U.S. Commerce Department disclosed that U.S. retail sales surpassed expectations by climbing 0.6 per cent in August, well above the estimated 0.1 per cent increase.

In a separate development, the European Central Bank (ECB) announced a 25 basis points rate hike on Thursday, elevating the deposit rate to 4.00 per cent. This decision exerted downward pressure on the euro and subsequently bolstered the U.S. dollar, which limited the growth potential for gold.

On the commodities market, silver for December delivery experienced a decline of 18.70 cents, or 0.81 per cent, closing at 22.994 dollars per ounce. Meanwhile, platinum for October delivery witnessed a rise, increasing by 5.90 dollars, or 0.65 per cent, and concluding the session at 911.10 dollars per ounce.