Gold Update – 04-Oct-2024
Comex Gold prices recovered after hitting a daily low of $2,657, settling above $2,679, driven by rising fears over the Israel-Iran conflict and a stronger US Dollar. The US Dollar Index (DXY) gained 0.35%, reaching 101.95, as bets on aggressive Federal Reserve easing faded. Labor market data revealed that US Initial Jobless Claims rose to 225K, exceeding estimates of 220K, while Factory Orders contracted by -0.2%, missing the expected 0%. However, the ISM Services PMI expanded to 54.9 in September.
Geopolitical tensions escalated as Israel advanced into Lebanon following a missile attack by Iran, while US President Joe Biden discussed potential strikes on Iranian oil facilities. Federal Reserve officials signaled caution, with Chicago Fed’s Austan Goolsbee emphasizing a steady approach to rate cuts, as inflation appears on target.
Traders now eye Friday’s Non-farm Payrolls report, expecting 140K jobs added in September, slightly below August’s 142K, with the unemployment rate forecast to remain unchanged at 4.2%.
