Although gold prices continue to be range bound, gold is trading fractionally higher on the day. Gold futures basis the most active December Comex contract is trading up $4.80 and fixed at $1,193.40.
Gold is trading under dramatic pressure today, with the most active Comex futures contract currently fixed at $1,191.40, which marks a net decline of $14 (-1.16%) on the day.
Gold opened at $1,206.70 this morning, which is just above its 50-day moving average. After trading to a high of $1,208, gold began to sell off and broke below $1,205.70, which is the 50- day moving average.
Interesting activity is afoot in the financial markets as a reaction to the release of the Labor Department’s jobs report numbers for September. According to the Labor Department, there were 134,000 jobs added in September. This was well below economic estimates which were looking for 185,000 jobs to be added last month.
The question on many gold traders and investors minds is whether gold will be able to maintain its current price point above $1,200 per ounce. From the last week of August to the last week of September, gold prices were able to sustain a value at or slightly above $1,200.
Yesterday’s sharp gains in both gold and silver were directly tied to concerns by the European Union that the proposed Italian budget could cause contagion amongst other member nations.
In English, this Italian title translates to “gold higher on concerns about Italy.” Acting like a safe-haven asset for the first time in a while, gold prices traded dramatically higher as concerns have grown by the European Commission about the proposed budget plan in Italy.
U.S. equity markets had one of their strongest showings today since September 20. The Dow Jones Industrial Average closed near all-time highs today after gaining 192.90 points and closing at 26,651.21. This, coupled with respectable gains in the Standard & Poor’s 500, has confirmed that the strong risk-on market sentiment which has been in place since April of this year continues.
Although gold prices have traded higher today, prices have declined this week, this month, as well as the last two quarters. As of 4:30 PM Eastern standard time, gold futures are trading up by $7.90 and fixed at $1,195.30 per ounce.
“Our economy is strong. Growth is running at a healthy clip. Unemployment is low, the number of people working is rising steadily, and wages are up. Inflation is low and stable. All of these are very good signs.”
When asked if he is influenced by political criticism by president Trump, Federal Reserve Chairman Jerome Powell said that, "We don't consider political factors or things like that. That's who we are. That's what we do. And that's just the way it's always going to be for us."
