Gold Traders Get Little Rest From `Wild Day’ as Volatility Jumps
Donald Trump and the Federal Reserve are messing with gold traders’ heads.
Bullion got whipsawed this week as comments from Federal Reserve Chairman Jerome Powell damped expectations for a lengthy easing cycle, while fresh U.S tariff threats a day later fueled global-growth concerns that renewed demand for the metal as a haven. Payrolls data Friday showing higher U.S. wages and slower job gains did little to add clarity.
“We had a wild day in the markets yesterday, perhaps apt considering that this is the start of August when crazy things usually happen,” Ed Meir, an analyst at INTL FCStone, said in a report Friday. “Market conditions remain unsettled.”
The CBOE/Comex Gold Volatility Index, a measure of price swings on gold futures, rose the most in six weeks on Friday. Spot gold slipped 0.3% to 1,440.83 an ounce in New York, while gold futures for December delivery settled 1.8% higher on the Comex.