Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.6% to close just under $2,048 despite a stronger dollar as Treasury yields receded on weak US jobs and wage data, lifting alternative assets.

Merely 103,000 new jobs were added to private payrolls in November, according to ADP, well below estimates. In another sign of a weakening labor market, the economy has added an average of fewer than 100,000 non-government jobs per month for the past three months, the softest period since the pandemic in 2020.

The more definite government nonfarm payrolls report, due Friday, will provide a clearer indication of relative strength of the labor market.

Separately, unit labor costs declined at an annualized rate of 1.2% in Q3, the BLS reported today, far more than initially thought. Falling labor costs help to drive down prices for goods and services, easing pressure on the Fed to maintain high interest rates.

Benchmark 10-year Treasury yields retreated to under 4.12% on the softer jobs and wage data, boosting gold by decreasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

Limiting gold’s gains, the dollar added 0.3% against major rivals, especially the euro, as traders speculated that the ECB may cut interest rates by March. Falling rates in Europe weaken the euro and make the dollar more attractive.

The other precious metals were mixed, with silver and platinum falling 1.3% and 1.4%, respectively, while palladium picked up 1.1%.

At the Comex close: February gold gained $11.60 to $2,047.90; March silver slid 32 cents to $24.23; January platinum shed $12.90 to $893.70; and March palladium picked up $10.40 to $950.70 an ounce.