Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold dipped 0.2% to close at a six-week low above $1,201 as strong payrolls data reinforced the likelihood of a rate hike from the Fed when it meets next week. The metal finished the week 2% lower but held above the psychologically-important $1,200 mark.

U.S. nonfarm payrolls added 235,000 workers last month, beating forecasts, as the construction sector enjoyed its biggest job-boom in nearly 10 years. Wages advanced by a disappointing 0.2%. Job growth has now averaged more than 186,000 per month for the past seven years.

A strong NFP report for February is widely seen as the final box to be checked by the Fed before they sign-off on the year's first rate increase. CME Fedwatch has upped the odds of a quarter-point hike to 92% from 89% yesterday. Higher rates typically weigh on gold by boosting the dollar, which makes it more expensive for users of other currencies.

Despite the hawkish rate outlook, the dollar slipped as the euro rallied on news that the ECB discussed the possibility of increasing interest rates in the Eurozone.

The other precious metals were mixed on the day and lower for the week. Silver fell 0.7% for a weekly loss of 4.6%. Platinum edged up 0.1% but still lost 5.6% this week. Palladium slid 0.4% for the day and 2.9% for the week.

At the Comex close: April gold for slipped $1.80 to $1,201.40; May silver dropped 11 cents to $16.92; April platinum added $1, to $938.20; and June palladium slid $2.90 to $745.15 an ounce.