Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold slid 0.9% to close just under $1,097 today as strong jobs and wage data boosted the dollar, diminishing demand for alternative assets. But the metal still notched its best week in four months with a 3.6% gain as global investors sought safety from plunging equities and rising geopolitical instability.

U.S. nonfarm payrolls added an impressive 292,000 jobs in December, handily beating forecasts, and totals for November were revised higher by 50,000, showing the U.S. economy to be on relatively solid footing despite ominous slowdowns in China and Europe.

New data from the Labor Department show wage growth accelerated in the fourth quarter, rising at an annual rate of 2.5%. While weak by historical standards, the faster pace suggests improvements in the job market are finally translating into higher incomes, which, in turn, should fuel consumer spending, inflation, and overall economic growth.

The dollar stepped higher on the upbeat data as traders speculate that the Fed will now be more inclined to raise interest rates again in March. A stronger buck weighs on gold and other commodities denominated in it for international trade by making them more expensive to foreign buyers.

Global demand for safe havens moderated slightly after China's stock market rebounded by 2%, stabilized by PBOC's decision to halt the intentional slide of the yuan. The Shanghai Composite Index nonetheless lost 10% on the week, helping to trigger weekly losses of around 6% for the Dow and S&P 500.

The other were mixed of the day and week. Silver dropped 3% today but gained 0.8% this week. Platinum added 0.1% for the day but fell 1.6% for the week. Palladium edged up 0.1% this session but plunged more than 12% this week.

At the Comex close: February gold slid $9.90 to $1,097.90; March silver dropped 42 cents to $13.92; April platinum added $1.20 to $878.70; March palladium slipped 60 cents to $493.60 an ounce.