Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold fell 1% to close just over $1,338 after stronger-than-expected employment data reduced safe-haven demand. U.S. non-farm payrolls added 175,000 new jobs in February, the most in three months, helping to offset concerns that recovery in the labor market is stalling out. The unemployment rate edged up to 6.7%, however, for the first increase in fourteen months. Despite the pullback, gold finished the week 1.3% higher on mixed global economic signals and rising geopolitical risk in the Ukraine.

While hardly stellar, the jobs data is likely to keep the Fed on pace to reduce quantitative easing, its program of buying long-term U.S. government debt to stimulate the economy, by another $10 billion per month when it meets again later in March. Tantamount to printing money, QE has supported higher gold prices by devaluing the dollar and increasing the risk of long-term inflation.

The dollar gained broadly on the payrolls report, pressuring gold and other commodities that are denominated in dollars for international trade. Silver plunged 3% for a loss of 1.5% this week. Platinum slipped 0.2% today but gained 2.5% this week. Palladium added 0.1% for the day to finish the week with a whopping 5% gain behind supply concerns because of an ongoing strike in South Africa,

At the Comex close: April gold fell $13.60 to $1,338.20; May silver plunged 65 cents, or to $20.93; April platinum slipped $3.20 to $1,483.60; and March palladium added 65 cents, to $781.80 an ounce.