Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.5% to close at a one-week high above $1,964 as rising unemployment claims cast a shadow on the US recovery and the ECB left rates unchanged, strengthening the euro at the dollar's expense. The metal has risen for three consecutive sessions.

Nearly 1.7 million Americans filed for first-time jobless claims last week, state and federal combined. With new claims rising for three straight weeks and new layoffs hitting the travel and hospitality industries, the summer recovery in the labor market appears to be grinding to halt.

Wall Street shifted from gains to losses as the rising jobless claims underscored the uncertainty facing the US economy. The Dow lost 0.8% while the S&P 500 and Nasdaq fell 0.9% and 1%, respectively. Safe-haven Treasurys rose alongside gold, pressuring yields.

The dollar extended its recent losses, dropping another 0.2% against major rivals led by the euro after the ECB left interest rates unchanged and ECB head Christian Lagarde signaled support for the shared currency's recent strength against the dollar.

A rising euro pulls Forex traders away from the dollar in search of higher yields. A weaker dollar, in turn, supports gold and other commodities by making them less expensive in other currencies.

The other precious metals were also higher, with silver rising 0.8% while platinum and palladium added 1.7% and 0.6%, respectively.

At the Comex close: December gold gained $9.40 to $1,964.30; December silver rose 21 cents to $27.29; October platinum climbed $16.10 to $941; and December palladium added $12.70, to $2,330.90 an ounce.