Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.3% to close above $1,213 as bargain-hunters stepped in following Friday's 1.1% drop to a four-month low. Gold's gains came despite a rising dollar, which typically weighs on commodities priced in it for intentional trade by making them less expensive overseas

The dollar gained 0.2% against a basket of major rivals, jumping 1.5% against the yen, as traders speculated that last week's robust nonfarm payrolls report puts the Fed on track for another rate hike this year. The U.S. added 222,000 jobs last month, handily beating expectations.

Gold also received support from falling U.S. Treasury bond yields after ECB officials questioned whether the central bank was ready to taper its stimulus program of bond-buying, known as quantitative easing.

By maintaining monetary stimulus, the ECB drives European investors to seek the higher yield of U.S. Treasury bonds, bidding up their prices and, in turn, driving down their yield. Lower yield on bonds makes gold more attractive by reducing the opportunity cost for holding the metal, which provides no yield itself.

The other precious metals were mostly higher, with silver and palladium adding 1.3% and 0.7%, respectively, while palladium gained $3.50 t0 $1,213.20; September silver for climbed 20 cents to $15.63; October platinum dipped $2.20 to $901.90; and September palladium picked up $6.10 to $837.35 an ounce.