Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold recouped 0.4% to close above $1,280 after Fed Chair Janet Yellen, speaking in Jackson Hole, cited ongoing slack in the labor markets as a reason for the Fed to refrain from changing monetary policy. The metal nonetheless finished the week 2% lower following yesterday's technical sell-off, itself triggered by worries that upbeat U.S. economic data would lead to interest rates rising sooner than expected.

In a speech to central bankers, Yellen confirmed the majority opinion on the FOMC, saying labor resources remain underutilized in the wake of the Great Recession and the U.S. recovery still needs help. While acknowledging some improvements, she emphasized that lower unemployment is not an accurate measure of progress in the job market, citing stagnant wages and high levels of involuntary part-time work, among other factors, as reasons to keep interest rates near zero for quite a while longer.

Gold received additional support from geopolitical tension. Kiev accused Russia of a direct invasion after a convoy of trucks crossed Ukraine's border without permission. Hamas reportedly executed 18 Palestinians accused of collaborating with Israel. And senior U.S. military leaders said Islamic State militants in Iraq and Syria pose a major threat, raising the specter of broader U.S. intervention in the region.

The other metals were mixed on the day and down on the week. Silver dropped 0.2% today and 0.7% this week. Platinum finished almost even for the day, edging down slightly, but lost nearly 2.7% for the week. Palladium rallied nearly 1% today but closed the week 0.8% lower.

At the Comex close: December gold gained $4.80 to $1,280.20; September silver slipped 3 cents, to $19.39; October platinum dipped 80 cents to $1,418.50; and September palladium adde $7.70, to $887.60 an ounce.