Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Building on Friday's 2.1% rally, gold added another 0.1% to close near $1,138 as follow-through from last week's anemic jobs report combined with weak U.S. services data to fuel speculation that the Fed will not raise rates this year.

In separate surveys from the ISM and Markit, the U.S. services sector weakened in September to a three-month low. While still faring better than manufacturing, which faltered to near-contraction last month, services are beginning to feel the same headwinds�strong dollar, collapsing energy prices, slowing Chinese economy�that have hammered exports and hampered factories.

Following Friday's disappointing payrolls report, which showed just 142,000 new jobs added in September, today's poor services surveys caused traders to speculate that the Fed will delay its first rate increase in nine years until after December. Equities rallied after the data, with the Dow jumping 1% and the Global Dow 2.2%.

The other precious metals were mostly higher. Silver jumped 2.9% and platinum added 0.4% while palladium surrendered 1.2%

At the Comex close: December gold added $1 to $1,137.60; December silver jumped up 44 cents, $15.71; January platinum gained $3.40 to $912.90; and December palladium fell $8.40 to $689.20 an ounce.