Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold dipped 0.3% to hold above $1,358 after strong U.S. jobs data boosted risk appetite and tempered demand for safe havens. The metal nonetheless gained 1.5% for the week, notching its sixth consecutive weekly win. Silver rose to $20.10, gaining 1.5% on the day and 2.6% on the week.

Nonfarm payrolls added 287,000 jobs in June, far more than forecast and the most since last October, the Labor Department reported today. May's anemic total of 38,000 was revised sharply lower, however, to merely 11,000 new jobs added, and the unemployment rate ticked up to 4.9% as more jobseekers entered the market.

While the jobs report was a welcome sign of recovery in the labor market, it is unlikely to move the Fed toward a rate hike. The data was collected before the Brexit vote, which has damaged prospects for global growth, and wages remain low, with hourly earnings rising only two cents. CME FedWatch sees a 29% chance of a rate increase by December.

The dollar barely budged, adding just 0.1% against major rivals, while equities rallied on the data. The S&P 500 approached a record high before slipping back for a gain of 1.6%. The Dow gained 1.4% and the Global Dow 1.2%. Treasury yields hit fresh lows despite the strong jobs report.

Bank of America Merrill Lynch reported today that demand for gold has reached an all-time high according to fund inflows. In the week ended on Wednesday, $4.1 billion flooded into precious metals funds, the most on record, as investors sought refuge from Brexit fallout and near-zero or negative interest rate polices. Precious metals funds have gained investment in 24 of the past 26 weeks, according to BOAML.

The other metals finished higher for the day and week. Platinum added 0.5% for a weekly gain of 4.1%. Palladium rose 0.8% today and 1.9% this week.

At the Comex close: August gold dipped $3.70 to $1,358.40; September silver gained 26 cents to $20.10; October platinum picked up $5.10 to $1,100.20; and September palladium added $7.75, to $617.10 an ounce.