Gold futures hovered around the flatline on Tuesday as traders waits for the US nonfarm payroll data which was delayed by 18 days due to the US government shutdown and it’s expected to be released later in the day. The awaited US labor data is will determine the economic health of the world’s largest economy and the possible future plans to the Federal Reserve’s (Fed) monetary stimulus.
Yellow metal futures maturing in December on New York’s Comex were trading at $1,315.50 an ounce at the time of writing, while silver futures retreated 0.17% to $22.140 an ounce at the same time.
Gold Futures – SPDR Holdings
The overall sentiment in the gold market was affected after the world’s largest gold-backed exchanged-traded fund SPDR Gold Trust, revealed that metals in its holdings had dropped to its lowest in 15 weeks. On Monday, holdings dropped 10.51 tonnes lower to 871.72 tonnes, hitting its lowest level since February 2009, the company confirmed.
SPDR Holdings was considered as a big contributor to the yellow metal’s 21% drop this year, as it dropped its position in the metal by ground 430 tonnes this year.
Gold Futures – Federal Reserve
After the 16-day government shutdown, the non-farm payrolls report was delayed and expected to be released by the Labour Department later during the day. Analysts are expecting new jobs to rise by 180,000 in September, up from 169,000 in the previous month, however the unemployment rate is expected to remain unchanged at 7.3%. The non-payroll data figures will determine the future of the Fed’s monthly $85 billion bond-buying program.
The Federal Reserve will probably delay the tapering of its stimulus program until March because of the 16-day partial shutdown slowed the economic growth in the fourth quarter, according to analysts.
On Monday, the Federal President of Chicago, Charles Evans said that Federal Reserve will likely postpone the tapering due to the fiscal drama, the interest rate which is below the Fed’s target and the high unemployment rate.
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