Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold rose for a second session, adding 0.2% to close near $1,315, as higher oil prices and soft jobs data spurred demand for alternative assets. The metal still ended the week down 0.7% for its third straight weekly loss.

Crude oil jumped 1.8% to hit a three-year high near $70 per barrel on growing concerns that new sanctions against Iran and economic problems in Venezuela will reduce global supplies. In addition, OPEC cut production to a one-year low in April in a concerted effort to raise prices. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

US job growth was weaker than expected in April, with nonfarm payrolls adding just 163,000 new workers. The unemployment rate fell to 3.9% for the first time since 2000, but the reduction came from nearly 240,000 people leaving the workforce. Wage growth was also weaker than expected at just 0.1%, leaving traders to question whether the Fed will accelerate the pace of rate hikes despite higher inflation.

The dollar edged 0.2% higher despite the soft data after the euro plunged on tepid economic data in the Eurozone. Germany's PMI plunged to a 19-month low in March while the composite PMI also fell.

The other precious metals were mixed for the day and week. Silver rose 0.4% to notch a weekly gain of 0.1%. Platinum picked up 0.7% for the day but lost the same amount for the week. Palladium dipped 0.2% for a weekly loss of 0.6%.

At the Comex close: June gold gained $2 to $1,314.70; July silver rose by 7 cents to $16.52; July platinum climbed $6.30 to $910.30; and June palladium slipped $1.45 to $957.25 an ounce.