Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold was nearly flat, edging down $1 an ounce to close at $2,334.80 after weaker-than-expected US economic data raised hopes for rate cuts from the Fed, stoking risk appetite while pressuring yields and the dollar. The metal ended the weak down 1.1%. Silver slipped 0.5% to $26.24 for a weekly loss of 2.9%.

US nonfarm payrolls added just 175,000 jobs in April, the fewest in six months and far below forecasts of around 240,000. The unemployment rate rose to 3.9% from 3.8% in March, while annualized wage growth slowed to 3.9%, the lowest in three years.

Separately, the US services sector weakened sharply last month, with the PMI falling into contraction for the first time since December 2022, according to the ISM. The employment index was especially soft, dropping 2.6% to 45.9%, where anything under 50% indicates contraction. Roughly two-thirds of Americans are employed in services industries.

Benchmark 10-year Treasury yields tumbled back under 4.5% as traders speculated that the weak data could encourage the Fed to lower interest rates in September, if not before. The dollar fell 0.2% for the same reason.

Typically, lower yields and a falling dollar boost gold by decreasing the opportunity cost for holding it and by making it cheaper overseas, respectively.

But that lift was offset today by rising risk appetite. The Dow and S&P 500 jumped 1.2% each while rate-sensitive Nasdaq rose 2%.

Platinum climbed 0.3% today and 5.5% this week. Palladium picked up 1% today but lost 1% this week.

At the New York spot close: gold dipped $1 to $2,308.60; silver slid 14 cents to $26.45; platinum picked up $2.70 to $965.30; and $948.40 an ounce.