The gold price remains in a narrow range this morning as equity markets and emerging currencies continue to struggle but speculators are cautious ahead of the non-farm payrolls data tomorrow.
Platinum remains nonplussed over the strike action at the mines in South Africa. Talks are ongoing between the top three mining companies and the unions. 40% of global platinum supply has been affected by the industrial action.
US jobs data disappointed yesterday, prompting further concerns over the health of the US recovery. Private jobs data released by private payrolls firm ADP showed private employers added the smallest number of jobs to their payroll in January since August. Yesterday’s data disappointed and will have prompted many to wonder whether or not the Fed will slow the pace of their tapering. 185,000 was expected, whilst 175,000 was the final number.
Silver had a stealth move overnight, gaining 2 percent overnight, the biggest jump in over four months and its longest rally since December. Its ratio with gold is now at its lowest in nearly two weeks.
Assets in the SPDR Gold Trust ETF (ARCA:GLD) increased by 0.5% on Monday, however they were unchanged yesterday.
There is some short-term upside for gold, how long this will last however is unclear. At the moment the decline of many emerging market currencies is prompting safe-haven demand. China will also return to the markets tomorrow which will provide some support to the price of gold. The correction in the US stock market is likely to have some way to go which will provide some support for the gold price.