Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinRising for the sixth straight session, gold added another 0.4% to close near $1,334 as weak jobs data and a dovish rate view from the Fed boosted demand for safe-haven assets. It was the metal's highest finish since late February.

ADP reported private payrolls added merely 27,000 jobs in May, the fewest in nine years. Small businesses cut 52,000 jobs while large companies hired 68,000 more workers and mid-sized companies added 11,000. The dismal report undercut hopes for a strong showing by the more-authoritative Federal Nonfarm Payrolls data, due Friday.

On positive notes, the Fed's Beige Book said the economy grew moderately in April. Separately, the ISM reported its non-manufacturing index picked up steam in May. After a barrage of soft data on housing, manufacturing, and consumer spending this week, the upbeat reports helped to ease concerns of a sharp slowdown in the economy.

The dollar edged up 0.2% from a seven-week low after the ISM and Beige Book reports, capping gold's gains. The buck came under pressure yesterday when Fed Chair Jerome Powell signaled that the central bank was ready to cut interest rates if trade conflicts further damage the economic outlook. Yields on 10-year Treasurys slipped again as investors seek safe havens.

The other precious metals were mixed, with silver adding 0.2% while platinum and palladium fell 2% and 1%, respectively.

At the Comex close: August gold gained $4.90 to $1,333.60; July silver rose 2 cents to $14.79; July platinum dropped $16.30 to $802.80; and September palladium fell $13,.50 to $1,327.30 an ounce.