Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinExtending its record rally, New York spot gold added another 0.4% to close above $2,511, a fresh all-time high, as weak US data fueled expectations for rate cuts from the Fed, pressuring Treasury yields and the dollar while boosting alternative assets. Silver rose 0.8% to finish at $24.46 an ounce.

The Philadelphia Fed non-manufacturing index further into contraction last month, indicating persistent struggles in the service-related businesses that employ most people in the region.

Separately, traders are bracing for revisions to the governments nonfarm payrolls data that will show far fewer jobs created over the past year than previously reported. Wall Street forecasts between 600,000 and 1 million jobs will be removed from the BLS total from April 2023 to March 2024, revealing deeper weakness in the labor market.

The Fed has signaled recently that job creation is becoming more of a concern than inflation. The central banks dual mandate of price stability and full employment had been laser-focused on inflation ever since it peaked two years ago. But with prices trending solidly lower for many months, unemployment is likely to be top of mind at the Jackson Hole meeting this week and when the FOMC meets again in September.

Benchmark 10-year Treasury yields eroded further ahead of the BLS revisions, boosting gold by decreasing the opportunity costs for holding it instead of bonds as a safe-haven asset.

Tracking lower with yields, the dollar dropped another 0.4% to a new seven-month low against major rivals on expectations that the Fed will initiate an easing cycle in September. A softer dollar boosts gold and silver aby making them cheaper in other currencies.

Platinum and palladium, more closely tied to industry, slid 0.8% and 0.5%, respectively.

At the New York p[sot close: gold gained $9.50 to $2,511.30; silver picked up 22 cents to $24.46; platinum slid and.70 to $955.60; and palladium dipped $.80 to $915 an ounce.