Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold held nearly all of this week's 2.7% gain, dipping $1 to $1,207.70, after initial jobless claims rolled back and the European Central Bank left stimulus plans unchanged.

After climbing for most of November, first-time applications for unemployment benefits receded last week to 297,000 from 313,000 the previous week, lending hope for sustained momentum in the labor market. The improvement comes one day after a disappointing ADP report on private payrolls.

A strong reading in tomorrow's U.S. nonfarm payrolls report, the most widely anticipated monthly measure of employment, could create additional pressure on the Fed to raise interest rates. Higher rates are likely to weigh on the gold prices by strengthening the dollar.

Gold's losses were mitigated after the ECB pushed its decision about whether to undertake full-scale quantitative easing until its January meeting. The euro jumped and the dollar fell on the news, supporting commodities denominated in it for international trade.

The other metals finished higher, with silver adding 1% while platinum and palladium picked up 1.5% and 0.6%, respectively.

At the Comex close: February gold dipped $1 to $1,207.70; March silver jumped 16 cents to $16.58; January platinum gained $18.40 to $1,245.90; and March palladium picked up $4.60, to $802.15 an ounce.