Daily Gold Update

Source:Matt Warden, American Gold Exchange

Austin— Gold and silver prices edged lower in overnight trading but recovered during the day session with Comex closing prices nearly unchanged from yesterday�s levels. Precious metals prices have taken a pause this week after hitting 7-week highs on Monday awaiting Friday�s Nonfarm Payrolls employment data for clues that may affect the pace of the Federal Reserve�s plan to tighten monetary policy.

The dollar was bolstered by today�s Jobless Claims report, showing new unemployment claims continuing to decrease but that was tempered by weakening manufacturing data (PMI, Factory Orders), resulting in a mostly unchanged US Dollar Index (DXY).

The crosscurrents in this week�s US economic data releases has resulted in mostly static precious metals and dollar markets. The CME�s FedWatch Tool places the odds of another rate hike this December at 47%, slightly higher than the 46% odds at the start of the week. The consensus is for tomorrow�s nonfarm payrolls report to show 178,000 jobs added in July and the unemployment rate is predicted to edge lower to 4.3% with wage-inflation moving higher to 2.5% year-over-year. A deviation from the consensus view may finally provide direction to this week�s moored precious metals and dollar markets.

In other news, Coin World is reporting the US Mint will start selling the first-ever 1 oz US Palladium Eagle coins in September, 7 years after being authorized under the American Eagle Palladium Bullion Coin Act of 2010.

At the Comex close: December gold gained $1.70 to $1,274.30; September silver added 5 cents to $16.61; October platinum rose $13.80 to $965.30; and September palladium dropped $12.05 to $881.30 an ounce.