Gold pricing declined earlier this week on the heels of the most recent jobs report for March which was released on Friday. However, because markets were closed a delayed reaction occurred beginning Monday morning in Australia and moving through Hong Kong, London, and then New York with June gold futures trading to a low of $1995 before recovering and closing above $2000 per ounce.

On Friday the U.S. Bureau of Labor Statistics released the jobs report for March. However, because the release occurred as many markets were either closed or shortened due to the Easter holiday weekend beginning with “Good Friday” the financial markets did not react to the numbers until trading resumed Monday morning in Australia.

Although trading in the futures markets for precious metals, energies, grains, and other commodities is closed for trading tomorrow in honor of “Good Friday”, in this case, the government never rests. Tomorrow the Labor Department will release the most current data for its non-farm payroll jobs report for March.

The solid breakout that moved gold futures above $2000 to a high of $2043 yesterday, and $2049.20 today indicates a new level of support well above $2000 per ounce.

A solid breakout in gold moved futures pricing well above $2000 in trading today. Currently, the most active June 2023 contract is trading up $39.10 or 1.94% and fixed at $2039.40. That puts gold within striking range of the all-time high of $2088 as well as the record closing price for gold futures at $2069.40.

It has been just a little over one year ago that gold futures traded and closed above $2000 per ounce. On March 8, 2022 gold futures opened above $2000 per ounce, traded to a high of $2078 and closed at approximately $2043. Even though gold futures were able to close well above $2000, that price point was unsustainable.

Gold reacts to the release of the PCE inflation index with a $10 decline. As of 4:25 PM EST gold futures basis the most active June contract is currently off by 0.41% ($10.70) and fixed at $1986.90. Silver continues to differentiate itself from daily moves in gold moving higher today in unison with a stronger US equities market.

Gold traded higher by low double digits today. The gains are the result of two factors and tomorrow’s PCE inflation report. Currently, the April 2023 contract of gold futures is trading up $14.20 and fixed at $1981.10. Concurrently, the June 2023 contract of gold futures is fixed at $1998 up $13.50. Today the June contract hit an intraday high of $2002.40.

Although gold prices had a modest decline in trading today, the overall fundamental environment that had caused gold pricing to trade above $2000 last week remains solidly entrenched. Today’s modest single-digit decline in gold resulted from market participants once again focusing on risk-on assets with U.S. equities rising.

Although some concerns regarding the banking crisis might be subsiding, there continues to be potential negative economic fallout. It is unclear whether or not the recent bank failures are limited to those banks identified or whether the failure of SVB and Signature Bank of New York are precursors to more banking failures.