Gold Futures Pressured by Election, FOMC, Jobs Data

October 31, 2016 5:24AM CDT

Commodities futures markets prices are mixed ahead of a full week of data culminating in the U.S. Employment report on Friday. Meanwhile, gold futures are under pressure as fresh controversies arise in the U.S. presidential election.

The contentious election comes to a close one week from tomorrow and investors are keeping watch after the FBI said it would review further emails from Clinton in connection with its investigation into her use of a private email server. Some analysts say the inquiries could throw the electoral race off course.

December gold futures were down .22 at $1,274 an ounce on Monday. Gold futures have lost about $80 within the past month, pressured by possible higher interest rates in the U.S., stronger dollar futues, and increased global economic and political stability. However, commodities futures analysts say demand for the metal should prop up gold futures prices in the near future.

The Hindu Diwali Festival of Lights begins October 30th and is following by the wedding season, events that increase demand for gold and in turn boost the price of gold futures.

In the U.S., Monday’s data includes the Chicago Purchasing Managers Index, which fell to 50.6 in October from 54.2 in September, and compared to expectations of 53.7.

Personal Income fell slightly to 0.3 percent in September, according to the U.S. Department of Commerce, compared to economists’ forecasts of 0.4 percent for the month. Personal Spending was in line with expectations at 0.5 percent.

The Core PCE Price Index was lower than expected at 0.1 percent in September. Economists had forecast a reading of 0.2 percent.

The U.S. economic calendar on Tuesday brings the Institute for Supply Management report for October as well as September Construction Spending and October Auto and Truck Sales.

The Federal Open Market Committee’s decision on interest rates is due on Wednesday, and commodities futures markets participants widely expect the U.S. central bank to maintain the current rate. Third-quarter Productivity and Unit Labor Costs are due on Thursday, as are September Factory Orders.

In addition to the monthly labor data, Friday’s calendar brings the September Trade Balance.

Gold Daily

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