Column: Electric dreams turn into a nightmare for battery metals
A sector that was once racing to build new supply has been closing mines and deferring projects as low prices bite into the cost curve.
Gold held an advance above $2,500 an ounce, bolstered by the latest US jobs reading ahead of more data due later Friday, which could prove key in determining the size of the Federal Reserve’s rate cut this month.
Bullion rose 0.8% on Thursday following a report that showed US companies added the fewest jobs last month since the start of 2021. The figures added to evidence that the labor market is shifting into a lower gear, boosting chances the central bank’s expected pivot to monetary easing in September will be the first of a series of rate cuts.
A weak US payrolls report on Friday could help determine whether the Fed cuts by 25 or 50 basis points at its next meeting. Lower rates are typically positive for non-interest bearing gold, which has also been supported this week by a weaker dollar as the precious metal is priced in the US currency.
Bullion is up by more than 20% this year and peaked at a record $2,531.75 an ounce in August. Along with Fed rate-cut optimism, it’s been supported by strong over-the-counter purchases and haven demand due to conflicts in the Middle East and Ukraine.
Spot gold was little changed at $2,517.44 at 7:28 a.m. in Singapore, and up 0.6% for the week. The Bloomberg Dollar Spot Index slipped 0.1%, after falling 0.5% over the previous two sessions. Silver and palladium were little changed, while platinum edged up.
(By Sybilla Gross)
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