Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold finished nearly flat, easing 40 cents but holding above $1,215, as traders await tomorrow's federal jobs report for near-term direction in the market.

The metal reached as high as $1,220 in intraday trade as the dollar pulled back after the ECB surprised investors by refraining from further easing at its monthly meeting. In recent weeks, ECB head Mario Draghi has been signaling that additional stimulus would be forthcoming to pull the Eurozone out of its economic doldrums. A falling dollar supports higher prices for gold and commodities denominated in for international trade.

Gold fell back, however, after falling first time jobless claims suggested improvements in the labor market. Tomorrow's release of non-farm payrolls data for September promises to be important for the dollar and gold. A strong report, above 200,000 jobs added, will heighten speculation that the Fed may raise rates before the middle of next. A weak report, flowing last month's disappointing 142,000, would increase the likelihood of a later start to the tightening cycle.

Demand for physical bullion appears to be rebounding on bargain-hunting after the recent drop in prices. Australia's Perth Mint, which refines all the bullion produced in Australia, the world's second-largest producer, reported gold sales rose 89% in September to an 11-month high. The U.S. Mint sold more than 58,000 ounces of U.S. Gold Eagle coins last month, more than twice as much as August and four times the amount it sold the previous September.

The other precious fell quite a bit harder than gold. Silver slid 0.6% while platinum and palladium lost 1% and 1.1%, respectively.

At the Comex close: December gold eased 40 cents to $1,215.10; December silver slid 10 cents to $17.04; October platinum fell $12.75 to $1,262.25; and December palladium dropped $8.51 to $765.75 an ounce.