Gold prices held near mid-June highs Monday as silver reached a seven-week peak. Traders reacted to a surprise contraction in U.S. employment, which lowered expectations for a September interest rate hike.
The Comex December gold contract touched $4,421.50 an ounce, its highest since mid-June. It traded 0.3% higher at $4,411.20 by midday in New York. Spot gold rose 0.4% to $4,357.11. Bullion gained over 7% last week after the U.S. economy shed 23,000 jobs in July.
Silver outpaced gold, with the September contract climbing as much as 2.5% to $65.075 an ounce. This marked its first time above $65 in seven weeks. Spot silver rose to $64.94, extending its weekly gain to more than 12%. Platinum and palladium prices traded lower.
Mining giant Barrick Gold experienced its worst day since March, with shares falling 6.5%. This followed a $1.95 billion deal to give rival Newmont a stake in Barrick’s Fourmile discovery. Analysts called the settlement price too low, favoring Newmont.
Money managers added over 15,000 Comex gold contracts to their net-long positions, reaching a six-month high. China’s central bank also added 640,000 ounces to its gold reserves in July. This marked the 21st consecutive month of buying and its largest addition since October 2023.