Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold jumped 0.9% to close above $1,965 after soft jobs and consumer data weighed on yields and the dollar, lifting alternative stores of value. It was the metal's highest finish in three weeks.

US job openings fell in July to a 28-month low and the number of workers quitting their jobs sank to the lowest level in 30 months, signaling that the labor market is cooling and employers are cutting back on hiring as the economy slows.

Separately, the Conference Board's consumer confidence index dropped sharply in August as Americans became less optimistic about the job market and economy. An associated gauge of expectations over the next six months dropped to just above 80, a level that historically signals recession within the next year.

Benchmark 10-year Treasury yields pulled back to just above 4.1% as traders speculated that the Fed will be less inclined to raise interest rates again this year. The odds of a pause at the September meeting rose to 86% from 78% just before the jobs and consumer data.

Falling yields lift gold by decreasing the opportunity cost for holding it instead of bonds as a safe-haven asset. Tracking lower with yields, the dollar dropped 0.5%, supporting gold and other commodities by making them cheaper in other currencies.

Gold also enjoyed a tailwind from rising oil prices as Hurricane Idalia's imminent landfall in Florida raised worries about supply, lifting US benchmark WTI 1.3% higher. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were mostly higher, with silver and platinum rising 2.2% and 1.4%, respectively, while outlier palladium slipped 0.4%.

At The Comex close: December gold jumped $18.30 to $1,965.10; September silver rose 54 cents to $24.79; October platinum picked up $13.90 to $986.10; and December Palladium dropped $4.70 to $1,257.20 an ounce.