Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.5% to close just under $1,257 after soft private-sector payrolls data reduced risk appetite. ADP said private employers added 175,000 jobs in January, the lowest total in five months and substantially fewer than December�s 227,000. While not terrible, the report triggered a mild pullback in U.S. equity markets despite a new ISM report showing that service industries expanded by the most in three years in January.

The mixed data raised questions about the strength of the labor market and whether the Fed will maintain its current pace in reducing quantitative easing. QE has supported higher prices for precious metals in part by devaluing the dollar and increasing the risk of long-term inflation.The dollar slipped against most major rivals, lifting demand for precious metals as alternative stores of value. Silver climbed 2% while platinum and palladium rose 0.4% and 1%, respectively.

At the Comex close: April gold gained $5.70 to $1,256.90; March silver climbed 38 cents to $19.80; April platinum added $5.90, to $1,379.30; and March picked up $7 to $707.10 an ounce.