Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold jumped 1% for its biggest daily gain in two weeks, closing near $1,294 as disappointing jobs data shifted expectations away from an early increase in interest rates. The metal finished the week 0.7% lower for its third straight down week.

U.S. non-farm payrolls added 209,000 jobs in July, a solid number but well below forecasts, and the national unemployment rate rose to 6.2%. More alarming for the health of the labor market and economy, the new report showed that wages remained flat for another month, as they have for the past two years. Without rising wages, consumer spending and overall growth are hamstrung.

Viewing the new data as validation of Fed Chair Janet Yellen's position that the job market has more healing to do, traders speculated that the Fed will come under less pressure to raise interest rates before the middle of next year. The dollar fell after the report, supporting higher gold prices. Treasury bonds rallied alongside gold on receding rate-hike fears while U.S. and global equities extended their slide.

The other metals were mixed. Silver slipped 0.2% to close the week down nearly 2%. Platinum edged up by less than 0.1% but lost 1% on the week. Palladium dropped 1.1% today and 2% this week.

At the Comex close: August gold jumped $12.30 to $1,293.60; September silver slipped 4 cents to $20.37; October platinum edged up $1.80 to %1,465.20; and September palladium dropped $10.40 to $863.30 an ounce.