Gold edges up ahead of US jobs data
Gold prices rose in European trade on Friday for the third straight session ahead of US monthly jobs data.
The data will provide fresh clues on the future of US interest rates and monetary policies in 2024.
Gold Prices Today
Gold prices rose 0.3% to $2,034 an ounce, with a session-low at $2,026, after rising 0.2% yesterday as the dollar lost ground against rivals.
Gold is down 1.8% so far this week on track for the first weekly loss in a month on profit-taking away from a record high at $2,146 an ounce.
US Rates
The odds for a Fed interest rate hike at the December meeting stood at just 2%.
Odds for an interest rate cut at the Fed March 2024 meeting stood at 60%, while odds for such a cut at the May meeting stood at 85%.
US Jobs Data
Now investors await the all important US payrolls data in November, with the economy expected to have added 336 thousand new jobs in October.
The unemployment rate is expected at 3.9%, while average hourly earnings are expected up 0.3% last month.
The SPDR
Gold holdings at the SPDR Gold Trust fell 0.28 tonnes yesterday to a total of 880.55 tonnes.
US tech sector pushes stock indices higher
US stock indices rose on Thursday as the tech sector rebounded following data, however pharmaceutical stocks were under pressure from US government decisions.
Earlier data showed US unemployment claims rose to 220 thousand last week, below estimates of 220 thousand.
Now investors await the all important payrolls report tomorrow for November.
Otherwise, US President Joe Biden announced a decision that allows the government to acquire patents for high-cost drugs in a new stop that aims at controlling the high costs of drugs, and promote competition.
The decision only related to drugs developed with federal funding, with high prices and low access by the public.
On trading, Dow Jones rose 0.1%, or 5 points as of 16:37 GMT to 36,050, while S&P 500 rose 0.6%, or 29 points to 4578, as NASDAQ rallied 1.1%, or 160 points to 14,310.
Oil prices try to recover from six-month trough
Global oil prices rose on Thursday for the first time in six days away from six-month lows as the dollar slows down.
Concerns about US oversupply were assuaged, after a surprise drop in US crude stocks last week, while US crude production tapered off from recent record highs.
Prices were also boosted by remarks from member nations in the OPEC+ organization about deepening production cuts in the first quarter of next year to support prices.
Global Oil Prices
US crude rose 1.5% to $70.38 a barrel, while Brent added 1.6% to $75.43 a barrel.
US crude lost 3.9% on Wednesday, the fifth loss in a row, plumbing six-month lows at $69.13 a barrel, while Brent declined 3.7% to $74.14 a barrel, the lowest since June 29.
The recent wave of losses came amid concerns about softening demand in the US and China.
The Dollar
The dollar index fell over 0.4% on Thursday off three-week highs at 104.23 against a basket of major rivals.
Dollar was also hurt by a string of weak US labor data which pave the way for early interest rate cuts in 2024.
US Stocks
The Energy Information Administration reported a drawdown of 4.6 million barrels in the week ending December 1, beating estimates of a 1.3 million barrels drawdown.
Such a drawdown comes following a wave of buildups in the past six weeks, and it's a sign for rebounding demand in the US.
US Production
The EIA also reported a drop of 100 thousand bpd in US crude output last week, the first such decline since July to 13.1 million bpd.
OPEC+ Remarks
OPEC+ member Algeria said it's prepared to cut output further if needed after oil prices hit five-month lows.
Russia Vice Prime Minister said the organization is prepared to extend and deepen production cuts in the first quarter of 2024 to boost prices.
Dollar gives up three-week high ahead of unemployment claims data
Dollar declined in European trade on Thursday against a basket of major rivals away from three-week highs on track for the first loss in four days on active profit-taking.
Such losses come ahead of US unemployment claims data later today, which will provide clues on the health of the US labor sector.
The Index
The dollar index fell 0.4% to 103.78, with an intraday high at 104.20, after rising 0.2% on Wednesday, the third profit in a row, hitting a three-week high at 104.23 on speculation Bank of England and the ECB might cut interest rates faster than the Fed.
US Rates
The odds for a Fed interest rate hike at the December meeting stood at just 2%.
Odds for an interest rate cut at the Fed March 2024 meeting stood at 60%, while odds for such a cut at the May meeting stood at 85%.
Fresh Data
Now investors await important US labor data, including unemployment claims data for the week ending December 2, and the payrolls report tomorrow.
US unemployment claims are expected up to 221 thousand last week from 218 thousand in the previous reading.
Obviously, strong US labor data would assuage concerns about the economy and potentially delay interest rate cuts in 2024, in turn underpinning the greenback.