Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold eased 0.5% to close under $1,134 after a round of upbeat data on employment and productivity boosted the dollar and rallied stocks, diminishing demand for alternative assets.

ADP reported private employers added 190,000 jobs in August, falling short of consensus forecasts of 201,000 but improving on July's total of 177,000. The broad-based gains signaled solid if not spectacular job growth, and raised hopes that the more-authoritative nonfarm payrolls report, due on Friday, will show similar strength.

In a separate report, the Labor Department said nonfarm productivity rose during the second quarter at its fastest pace since 2013. But the overall trend in productivity remains weak, rising merely 0.7% over the last twelve months. Higher productivity helps to squeeze excess capacity from the economy, ultimately leading to higher wages and rising inflation�both of which are stated goals of the Fed.

The better data helped stocks bounce back from yesterday's steep losses, with the Dow and S&P 500 gaining 1.8% while the Nasdaq jumped 2.4%. The dollar regained some lost ground, adding 0.4% against major rivals. A stronger dollar typically pressures gold and other commodities by making them more expensive to foreign buyers.

The other precious metals all finished higher, with silver edging up 0.3% while platinum and palladium added 0.5% and 0.7%, respectively.

At the Comex close: December slid $6.20 to $1,133.60; December silver added nearly 5 cents, to $14.67; October platinum gained $5.20 to $1,013.60; and December palladium rose $4.15 to $583.35 an ounce.