Gold

Undeniably the most important economic data to be released this month is the U.S. Labor Department’s jobs report which came out today. Economic estimates for new non-farm jobs for the month of August came in at 190,000. The actual data released today came in above expectations and forecasts revealing that 201,000 new nonfarm jobs were added last month.

Gold futures are currently trading up $3.70 and as of 4:00 PM Eastern standard time, are fixed at $1,205. That makes for a modest gain but well below the highs achieved earlier as gold traded to $1,212.70 an ounce.

Multiple factors continue to influence gold pricing which has been under dramatic pressure since the beginning of April when gold traded to its highest value this year at $1,370. Gold futures closed below $1,200 per ounce in trading activity yesterday, but today’s fractional gains have moved pricing back above that key psychological level.

An equal combination of both selling pressure and dollar strength have once again taken gold prices lower, resulting in gold futures breaking below $1,200 per ounce. Most active December Comex futures are currently trading off $9.30 on the day and fixed at $1,197.40.

Gold prices continue to be pulled by outside factors such as a strong dollar and dynamic U.S. equities markets creating a favorable and continued risk-on market sentiment. Today traders and investors bid gold prices higher with a strong U.S. dollar of equal force negating any realized gains.

As of 4:00 PM Eastern standard time, spot gold is trading just above $1,200 at $1,200.09. This occurred after trading to a low today of $1,196.45 before slightly recovering. Although dollar strength can be cited as an underlying force, it is selling pressure that is dominating the markets today.

Both the NASDAQ Composite and the Standard & Poor’s 500 closed at new record highs today, with tech and oil stocks fueling this most recent rally. The NASDAQ, which broke above 8,000 earlier this week, hit a new milestone today as the tech-heavy composite index closed above 8,100.

Gold futures are trading under pressure today with the most active December Comex contract currently down $8.80 (-0.72%) and fixed at $1,207 20. After gaining over $20 in value on Friday, gold tracked fractionally higher in trading yesterday. However, closing occurred below a key technical resistance level at $1,217 per ounce.

Considering that U.S. equities have had a strong upside move today, with the NASDAQ Composite closing at a new record high price at 8,013.33, gold futures are holding up rather well and currently trading up $3.60 at $1216.90. This is a nominal price gain; however when taking into account the incredibly strong risk-on market sentiment on the surface, it is impressive.

In his first speech as Fed Chairman at the economic conference in Jackson Hole, Jerome Powell’s speech resulted in the U.S. dollar trading lower and a strong upside move in gold pricing.

In his speech, Powell said that the central bank's gradual path of interest rate hikes remains “’appropriate’ as there does not seem to be “an elevated risk of overheating.”