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Precious Metals Experience Pressure as Treasury Yields Rise

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After three consecutive days of decline, the most-active gold futures contract experienced a slight decrease in early Friday trading. This drop can be attributed to the rising Treasury yields and a moderately stronger U.S. dollar. These factors have continued to put pressure on precious metals prices, leaving traders eagerly awaiting the release of the July jobs report.

Price Action

  • Gold futures for December delivery (GC00, -0.07% GCZ23, -0.07%) fell by $1, or 0.1%, reaching $1,967.90 per ounce on Comex.
  • Silver futures for September delivery (SI00, -0.77% SIU23, -0.77%) decreased by 17 cents, or 0.7%, settling at $23.52 per ounce.
  • Palladium futures for September (PAU23, -0.59%) also experienced a decline of $7.90, or 0.6%, reaching $1,249 per ounce.
  • Platinum futures for October (PLV23, -0.56%) declined by $5.20, or 0.6%, down to $916 per ounce.
  • Copper futures for September (HGU23, -1.53%) fell by 6 cents, or 1.5%, standing at $3.84 per pound.

Market Drivers

Gold prices witnessed a modest decrease in anticipation of the release of the July jobs data. Economists predict that this report will indicate continued expansion in the U.S. labor market at a relatively robust pace.

According to Rupert Rowling, a market analyst for Kinesis Money, “Gold is currently experiencing a downward drift as market participants eagerly await the latest U.S. jobs figures. This data should provide more clarity on the health of the world’s largest economy.”

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