Gold prices rebounded on Monday after tumbling to their lowest level in three weeks following Friday’s surprisingly strong jobs report, which helped send Treasury yields and the dollar higher to the detriment of the yellow metal. Price action
Gold for April delivery
GC00,
+0.47%
GCJ23,
+0.47%
rose $9.50, or 0.5%, to settle at $1,885 an ounce on Comex. On Friday, prices for the most-active contract settled at their lowest level since Jan. 10 after falling 2.7%, the biggest one-day drop since June 17, 2021.
March silver
SI00,
SIH23,
increased by 6 cents, or 0.3%, to $22.47 per ounce after falling more than 5% last week.
April platinum
PLJ23,
+0.50%
advanced $8, or 0.8%, to $988 per ounce, while palladium for March delivery
PAH23,
-4.07%
fell by $31.40, or 1.9%, to $1,587 per ounce.
March copper
HGH23,
-0.22%
was flat at $4.05 per pound.
Market drivers After an impressive three-month rally, gold prices have moved sharply lower in the wake of Friday’s nonfarm payrolls report for January, which showed the U.S. labor market remains far more robust than economists had anticipated, potentially complicating hopes for slowing inflation.
Both the dollar and Treasury yields jumped in response to the data, which helped to weigh on gold prices, as the U.S. economy added more than half a million jobs last month, while previous monthly data were revised higher. See: Jobs report shows blowout 517,000 gain in U.S. employment in January “The revival in yields and the dollar does not bode well for gold’s uptrend and although the precious metal is down about 5% from last week’s peak of just under $1,960/oz, this could be an overdue short-term correction following an impressive three-month rally,” said Raffi Boyadjian, lead investment analyst at XM. The ICE U.S. Dollar Index
DXY,
+0.39%,
a gauge of the buck’s strength against a basket of rivals, was up 0.3% to 103.21. The yield on the 10-year Treasury note
TMUBMUSD10Y,
3.632%
was up 6.8 basis points to 3.602%.