Daily digest market movers: Gold price skyrockets as US yields drop despite mixed US jobs data
- Private companies hired less than forecast but exceeded January’s reading at 111K as they added 140K jobs to the workforce, below estimates of 150K, according to ADP Employment Change report.
- The US Job Openings and Labor Turnover Survey (JOLTS) for January showed that there were 8.863 million job openings, a figure that fell short of expectations and was marginally lower than the previous month's report of 8.9 million and 8.889 million, respectively.
- US economic data previously released during the week:
- The S&P Global Services PMI experienced a slight decrease to 52.3, falling from January's 52.5, while the Composite PMI, which includes both manufacturing and service sectors, registered at 53.8. This figure did not meet expectations and was lower than the previous reading of 54.2.
- Additionally, the ISM Services PMI reported a decline to 52.6 from 53.4, coming in below the anticipated consensus of 53. This resulted in a negative impact on the US Dollar.
- Factory Orders in January fell more than expected, from 0.2% to -3.6% MoM.
- Gold prices remain supported by strong central bank buying in emerging markets.
- The near-term demand for Gold will be influenced by Fed Chair Jerome Powell’s testimony before Congress on Wednesday and an array of United States economic data released later this week.
- On Monday, Atlanta Fed Bank President Raphael Bostic said a strong labor market and decent economic growth have bought time for the Federal Open Market Committee (FOMC) to decide on when rate cuts will be optimal. Bostic added that the Fed is having a “rebounding success” as inflation slowly returns to the desired target without hurting labor demand.
- The US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, fell 0.38% to 103.38.
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