Gold pulls back from historic highs as US looks to jobs data

Gold (GC=F)

Gold prices pulled lower on Thursday morning on London, with futures dipping around 1% following recent highs as investors took profits off the table and searched for further clarity on the US Federal Reserve's rate cut path.

Gold futures contracts changed hands at $3,599 per ounce. The yellow metal's spot price declined 0.8% from the previous session to trade at $3,541.

On Wednesday, gold prices climbed to a new record high. It came as investors also sought out a safe haven following a recent selloff in equity and bond markets and ongoing global economic uncertainty.

Read more: FTSE 100 LIVE: Stocks rise as global bond market sell-off continues to ease

The prospect of US interest-rate cuts also boosted the metal’s appeal after Federal Reserve chair Jerome Powell cautiously opened the door to a reduction.

Meanwhile, the World Gold Council said it is seeking to launch a digital form of the precious metal. The move could revolutionise London’s $900bn physical market for gold by creating a new way to trade, settle and collateralise bullion.

COMEX - Delayed Quote•USD

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3,604.70

-30.80

(-0.85%)

As of 7:44:40 AM EDT. Market Open. Advanced Chart

Oil (BZ=F, CL=F)

Oil prices continued the trajectory of Wednesday's session on Thursday, selling off as OPEC+ considers boosting output targets in October.

Brent crude (BZ=F) fell 1.4% to $66.63 a barrel at the time of writing while US West Texas Intermediate (WTI) crude (CL=F) fell 1.6%, to $62.96. Over the past five sessions brent and WTI are down 2.7% and 1.9% respectively.

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OPEC's potential boost would mean that the cartel, which pumps about half of the world's oil, would be starting to unwind a second layer of output cuts of about 1.65 million barrels per day, or 1.6% of world demand, more than a year ahead of schedule. The bloc is set to meet at the weekend.

The group had already agreed to raise output targets by about 2.2 million barrels per day (bpd) from April to September, in addition to a 300,000 bpd quota increase for the UAE.

NY Mercantile - Delayed Quote•USD

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67.00

-0.60

(-0.89%)

As of 7:44:32 AM EDT. Market Open. BZ=FCL=F

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Pound (GBPUSD=X, GBPEUR=X)

Currency markets were calm on Thursday, eliciting small movements as traders await the next round of US jobs data.

The pound fell slightly against the dollar, dipping 0.03% to the $1.34 mark. Over the past five sessions sterling has dipped 0.5% against the dollar.

UK traders are awaiting fresh updates on the health of the UK economy, too, as the government prepares for a November budget update.

Bond markets have been in turmoil in recent days with yields spiking amid concerns that further tax increases from already high levels could damage growth, add to inflation, and leave a sizeable hole in the public finances. The 30-year gilt yield was down down 1.6% on Thursday from the 27-year highs seen at the start of this week.

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The pound rose slightly against the euro, trading 0.1% in the green around the 1.153 mark.

The US dollar index (DX-Y.NYB), which measures the greenback against a basket of six currencies, was muted, up 0.07% to 98.21.

On Thursday, investors will receive additional insight on the labor market with the release of ADP private payrolls and jobless claims.

The updates come ahead of the main event of the week on Friday with the August jobs report. July's jobs report revealed a shaky labor market, and further signs of stress could give investors reason to believe the Fed may consider a deeper interest rate cut this month than currently priced in.

CCY - Delayed Quote•USD

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1.3430

-0.0012

(-0.09%)

As of 12:53:52 PM GMT+1. Market Open. Advanced Chart

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