Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinRising for a second session, gold added 0.3% to close above $1,204 as weaker-than-expected jobs data weighed on the dollar, boosting demand for alternative stores of value.

ADP reported the private sector created 163,000 jobs in August, well below forecasts, for the smallest monthly increase since last October. The data damped optimism for a strong US nonfarm payrolls report, due Friday, which is viewed as the more authoritative gauge of job growth.

Separately, the Commerce Department said unit labor cost fell an annualized 1% in the second quarter as wage growth failed to keep pace with strong GDP. Persistently weak increases in workers' pay since the Great Recession remains a nagging problem for the Fed as it considers future rate hikes.

On the positive side, the ISM non-manufacturing index showed US service-oriented companies grew rapidly in August despite tariff-related increases in costs.

The dollar slipped 0.1% against major rivals as traders digested the disappointing jobs data. Also pressuring the buck, the UK pound extended yesterday's sharp rally that was driven by news that Germany will endorse a looser Brexit plan. A weaker dollar supports gold and other commodities priced in it for global trade by making them less expensive overseas.

The other precious metals were mostly higher, with platinum and palladium gaining 0.8% and 0.1% while silver slid 0.3%.

At the Comex close: December gold gained $3 to $1,204.30; December silver dropped 4 cents to $14.18; October platinum picked up $6.60 to $790.90; and December palladium added 90 cents, to $962.10 an ounce.