Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.8% to close above $1,722 after a mixed jobs data prompted a slight pullback in Treasury yields, lifting alternative stores of value. The metal still dropped 1.6% for the week, pressured by an increasingly hawkish rate view from the Fed.

The economy added 315,000 new jobs in August, consistent with forecasts but substantially fewer than July's 526,000, while the unemployment rate ticked up to 3.7%, the highest level in three months. Hourly pay rose 0.3%, matching the smallest increase in four months.

Separately, the Commerce Department reported that US factory orders declined sharply in July, with orders for manufactured goods falling 1%. It was the first decline in 10 months.

Benchmark 10-year Treasury yields dipped back under 3.2% as traders speculated that moderating job market might make the Fed less aggressive when it meets later this month. Falling yields support gold by decreasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

Also buoying precious metals, Wall Street extended its selloff to a third week, with all three major indexes falling more than 1% today and more than 3% this week.

Today's jobs data prompted a relief rally in gold, which had been in tailspin after Jerome Powell and other Fed officials vowed recently to keep raising interest rates. Another hot payroll report could have emboldened the central bank to become even more aggressive with rate hikes to constrain the economy and contain inflation.

The other precious metals were also higher for the day and lower for the week. Silver added 1.2% but still lost 4.6% this week. Platinum picked up 1.6% but fell 4.3% for the week. Palladium rose 1.5% for a weekly loss of 4.5%.

At the Comex close: December gold gained $13.30 to $1,722 .60; December silver added 21 cents, to $17.88; October platinum picked up $12.80 to $818.30; and December palladium climbed $29.80 to $2,026.10 an ounce.