Nonfarm Payrolls + CPI Served as Dual Catalysts, and Precious Metals Futures Closed Sharply Higher This Week [SMM Precious Metals Macro Analysis]
Precious metals fluctuated at highs overall this week, with spot gold rallying from $4,240 to above $4,440 and hitting a two-month high. The core drivers were a sharp downside surprise in July nonfarm payrolls and a mild pullback in CPI; expectations for a US Fed interest rate hike in September cooled significantly, the US dollar and US Treasury yields both pulled back, and central bank gold purchases accelerated. Watch for a rebound in oil prices, supply pressure in US Treasuries, and a short-term technical pullback.