Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.2% to close above $1,680 as the dollar retreated further on dovish rate hopes and upbeat Eurozone data, undercutting alternative stores of value. It was the metal's highest finish in nearly four weeks.

Last Friday's nonfarm payrolls report showed the US economy adding 261,000 new jobs in October. But the unemployment rate increased from 3.5% to 3.7% and wage growth fell from 5% to 4.7%, suggesting the Fed's hyper-aggressive tightening may finally be taking effect.

Several Fed members responded by signaling it might be time to throttle-back on the jumbo hikes that have lifted the benchmark rate from near zero to above 4% in eight months.

The dollar immediately plunged 1.9% on Friday and buck extended those losses today, falling another 0.7%, on momentum from the jobs data and Fed talk. A weaker dollar supports gold and other commodities by making the less expensive in other currencies, boosting demand overseas.

Further pressuring the buck, the euro and pound rallied on rising risk sentiment after German industrial production grew in September and Eurozone investor sentiment improved for the first time in three months.

The other precious metals were also higher, with silver adding 0.7% while platinum and palladium picked up 3% and 3.2%, respectively.

At the Comex close: December gold gained $3.90 to $1,680.50; December silver rose 14 cents to $20.92; January platinum picked up $28.90 to $989.40; and December palladium climbed $58 to $1,897.50 an ounce.