Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold jumped 1.4%, closing at a four-week high of just under $1,247, as a surprisingly weak jobs report eased concerns that the Fed may accelerate the pace of reductions in quantitative easing when it meets later this month. QE supports higher gold prices by devaluing the dollar and increasing the risk of long-term inflation. The yellow metal finished the week 0.7% higher for its third straight weekly rise.

U.S. non-farm payrolls added merely 74,000 jobs last month, the fewest in three years. Hiring was soft across almost all sectors, reversing trends seen in November and hinting at possible speedbumps in the recovery. On the upside, unemployment dropped to 6.7%, a five-year low. But the falling number appears to be the result of more would-be workers giving up the search, as the workforce-participation rate fell to a 35-year low.

The dollar fell on the downbeat data while safe-haven Treasury bonds rose alongside precious metals. A falling dollar supports higher prices for gold and other precious metals that are denominated in dollars for international trade. Silver jumped 2.7% to finish the week less than 0.1% higher. Platinum picked up 1.3% for the day and 1.6% for the week. Palladium added 1.3% today and 2% this week.

At the Comex close: February gold jumped $17.50 to $1,246.90; March silver surged 54 cents to $20.22; April platinum picked up $17 to $1,436.90; and March palladium added $9.55, to $746.05 an ounce.