Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.2% to close near $1,277 as bargain-hunters entered the market and the dollar slid ahead of the widely-anticipated US nonfarm payrolls report. The metal traded as high as $1,285 early in the session before receding on upbeat ISM data.

The dollar slipped 0.2% against major rivals as traders trimmed their bets ahead of the government's official jobs report, due Friday. Weak nonfarm payrolls data could give the Fed pause about another rate increase this year. ADP reported 135,000 jobs were added by the private sector in September, slightly short of expectations as hurricanes Irma and Harvey took their toll on hiring.

The dollar also came under pressure after Politico reported Treasury Secretary Steve Mnuchin favors Fed Governor Jerome Powell over former governor Kevin Warsh as the new Fed Chair. Closely aligned with Janet Yellen on policy, Powell is viewed as significantly more dovish than Warsh, which would likely mean a slower pace of monetary tightening.

The ISM services index jumped to a 12-year high in September, with 15 of 17 industries reporting growth. Employing around 80% of working Americans, services sector has been growing consistently for eight years while manufacturing languished. Earlier this week, though, the ISM manufacturing index surged to a 13-year high, signaling positive momentum for the economy entering Q4.

US stocks extended their rise to new record highs behind the upbeat data, with the Dow and S&P 500 both adding around 0.1%.

The other precious metals were mixed, with silver dropping 0.2% and platinum edging down less than 0.1% while palladium picked up 0.3%.

At the Comex close: December gold gained $2.20 to $1,276.80; December silver slipped 3 cents to $16.62; January platinum inched 70 cents lower to $914.80; and December palladium added $2.75, to $919.65 an ounce.