Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold jumped 1.2% to close at $1,813 as week jobs data reinforced expectations for additional fiscal stimulus, weakening the dollar and boosting demand for alternative stores of value. The metal still ended the week down 2%, pressured by rising US bond yields and a stronger buck.

The US added a scant 49,000 jobs in January as the resurgent pandemic continued to hamstring the economy. While the unemployment rate fell to 6.3% from 6.7% in January, the decrease was attributed to 400,000 leaving the workforce by giving up on looking for a job.

The weak jobs report increases the likelihood that the Biden administration will push through another $1.9 trillion in pandemic aid to help struggling families, businesses, and local governments. Both chambers of Congress have now passed a budget resolution enabling the relief package to pass without the threat of a Republican filibuster.

The dollar fell 0.5% against major rivals as traders speculate that the deluge of spending, along with ongoing quantitative easing from the Federal Reserve, will put the currency under renewed pressure. A weaker dollar supports gold and other commodities priced in it for global trade by making them less expensive in other currencies, lifting demand overseas.

The other precious metals were higher for the day and week. Silver rose 3% for a weekly win of 0.4%. Platinum climbed 2.7% today and 5.1% for the week. Palladium added 2% for a weekly gain of 5.7%.

At the Comex close: April gold gained $21.80 to $1,813; March silver rose 79 cents to $27.02; April platinum climbed $30 to $1,133; and March palladium picked up $45.60 to $2,326.30 an ounce.