Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold eased 0.3% to close under $1,810 after hotter-than-expected jobs data temporarily lifted yields and the dollar, undercutting alternative stores of value. The metal still scored a weekly rise of 3.2% to hover near a four-month high.

The government's nonfarm payrolls report showed 263,000 new jobs were added in November, an unexpectedly robust number that indicates residual strength in the labor market despite an overall slower economy. The unemployment rate remained near a 50-year low at 3.7%.

Perhaps more concerning for the Fed as it battles inflation, hourly wages rose 0.6%, the biggest increase in 13 months.

The dollar and Treasury yields both jumped immediately after the jobs data as traders speculated that the Fed may be unable to step down the pace of rate hikes, something Fed Chair Powell said on Wednesday is likely to begin this month.

Rising yields pressure gold by increasing the opportunity cost for holding it instead of bonds, while a stronger dollar makes gold and other commodities pricier in other currencies, limiting overseas demand.

But in after-hours trading, gold quickly recouped most its session losses, pushing back above $1,813 as the dollar and Treasury yields both turned negative. Traders decided that the Fed is still likely to pivot toward smaller rate hikes, with the market odds a hike of 50 basis point in December remaining above 75%.

The other precious metals were mixed for the day and higher for the week. Silver rose 1.8% today and 4.9% this week. Platinum fell 2.7% for the day but gained 4.9% for the week. Palladium added 2.3% for a weekly increase of 4.4%.

At the Comex close: February gold eased $5.60 to $1,809.60; March silver rose 41 cents to $23.25; January platinum fell $28.30 to $1,026.60; and March palladium lost $45.20 to $1,901.10 an ounce.