Precious metals traded higher on the day as initial jobless claims were better than expected, but the trade balance widened in December. Gold and silver remain elevated as market participants remain skeptical on further economic growth just ahead of the pivotal non-farm payroll report tomorrow morning.
Gold futures advanced on the day, but price action continues to be held under the $1,265/70 resistance level. “With stock markets doing bad, there should be no logic in shorting gold,” said Bernard Sin, head of currency and metal trading at bullion refiner MKS AG. Equities rallied today, but the safe-haven assets still remain a valuable option for many, at least within the short-term outlook. Some market participants believe the rally in equities could be short-lived, more so if tomorrow’s non-farm payrolls come in less than expected.
Silver traded higher, recovering from a recent slump, as the US dollar traded lower on the session. The silver-dollar pair trade has been evidence as those long the US have been shorting paper silver assets. Silver was able to trade higher for five consecutive sessions marking the longest uptrend since August. Silver was up over one percent on the session.
Platinum was slightly higher on the day as three of the largest producers continue with wage negotiations. South African labor unions issued a wage-based strike and demand livable wages for miners.