Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.8% to close near $1,178 as lackluster jobs data pressured the dollar, boosting demand for alternative stores of value. The metal closed the week nearly flat, dipping less than 0.1%.

U.S. nonfarm payrolls added 178,000 jobs in November, well under the 200,000 forecast, while totals for the prior two months were revised lower by 2,000. Average hourly earnings fell 0.1% for the first decline in nearly two years. The unemployment rate dropped to 4.6%, the lowest since 2007, but the decline was attributed to a contraction of 226,000 in the labor force, pushing participation to its lowest level since June.

The dollar retreated 0.3% against major rivals, supporting gold and other commodities, as traders questioned whether the soft jobs data will slow the pace of rate hikes in 2017. While a quarter-point rise this month as all but certain, the number of hikes next year will depend upon the ongoing strength of the economy.

Treasury yields also rolled back, as falling wage growth helped to allay concerns about rising near-term inflation.

The other precious metals were mostly higher. Silver jumped 2% for the day and 2.3% for the week. Platinum gained 2.4% to close the week 2.7% higher. Palladium fell 0.8% but managed a weekly rise of 0.6%.

At the Comex close: February gold gained $8.40 to $1,177.80; March silver added 33 cents, to $16.83; January platinum picked up $21.40 to $932.70; and March palladium dropped $6.20 to $745.50 an ounce.