Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold dipped 0.1% to close just under $1,227, a seven-week low, as solid jobs data boosted the likelihood of a June rate increase from the Fed. The metal lost 3.3% for the week.

The U.S. created 211,000 new jobs in April, according to the latest nonfarm payrolls report from Labor Department, with the unemployment rate falling to 4.4%, the lowest level in ten years. The report handily beat expectations, which were muted after March's abysmal increase of 89,000. Wage growth, however, softened from the previous month.

The solid rise in employment is expected to embolden the Federal Reserve to raise interest rates by a quarter-point when it meets again in June, putting it on pace for three hikes this year, as projected. Rising interest rates support the dollar by attracting foreign exchange investment seeking higher yield. A stronger dollar, in turn, weighs on gold by making it more expensive in other currencies.

Gold's 3.3% loss this week was its biggest weekly decline of 2017, with safe-haven assets coming under pressure after the Fed dismissed weak Q1 GDP growth as "transitory." In addition, political tension in Europe eased as Emanuel Macron, moderate candidate for the French presidency, pulled ahead of euro-skeptic Marine Le Pen in polls heading into this weekend's runoff election.

The other precious metals were mixed on the day but lower for the week. Silver slid 0.2% for a weekly loss of 5.7%. Platinum added 0.3% but still fell 4.1% this week. Palladium jumped 1.6% today but fell 1.7% this week.

At the Comex close: June gold dipped $1.70 to $1,226.90; July silver slid 3 cents to $16.27; July platinum added $2.72, to $910.20; and June palladium gained $12.80 to $813.05 an ounce.