Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold dipped 0.2% to close under $1,256 despite a weaker dollar as solid job growth reaffirmed expectations that the Fed will maintain its pace of interest rate hikes. The metal finished the week 0.1% higher.

The US added 213,000 new jobs in June, topping forecasts and signaling ongoing strength in the labor market. The unemployment rate rose to 4% from 3.8%, however, as more than 600,000 new workers entered the labor force.

A weak spot in an otherwise strong report was wage growth. Hourly pay edged up only 5 cents, leaving annual income growth unchanged at 2.7%. Soft wage growth reduces inflationary pressure and gives the Fed less incentive to raise interest rates.

The dollar dropped 0.4% against major rivals as rising trade-war worries pushed foreign exchange investors to other currencies. New tariffs on $34 billion in Chinese imports took effect today, with another $16 billion scheduled to take effect in two weeks. Meanwhile, President Trump threatened $500 billion in additional levies if China retaliates.

Gold had rallied 1.4% over the prior two sessions as the dollar fell back after a last-minute immigration deal averted a political crisis in Germany and upbeat Eurozone economic reports helped support the euro. Trade war concerns provided residual support as investors trimmed their exposure to stocks.

The other precious metals were mixed for the day but lower for the week. Silver slid 0.2% for a weekly loss of 0.8%. Platinum gained 0.9% but still lost 1.1% this week. Palladium rose 0.5% on the day but lost 0.4% on the week.

At the Comex close: August gold slid $3 to $1,255.80; September silver slipped 3 cents to $16.07; October platinum rose $7.20 to $848.60; and September palladium added $4.90, to $947.60 an ounce.