Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold jumped another 1.3% to close near $1,508 after soft jobs data amplified fears about slowing growth, driving investors away from risk and into safe-haven assets. The metal has risen 2.4% in the past two sessions, more than making up for Monday's 2.2% decline on quarter-end technical adjustments in futures trading.

ADP reported 135,000 jobs were added by the private sector in September, fewer than forecast, while August totals were revised down from 195,000 to 157,000. The weakness in hiring comes one day after the ISM said US manufacturing contracted to the lowest point since the global financial crisis in 2009.

Stocks tumbled on the accumulating signs of slowdown, with the Dow dropping 1.8% while the Global Dow plunged 2.8%. Treasurys rallied for a second day along with gold on flights to safety, knocking yields sharply lower.

The dollar also fell for a second day, sliding 0.1% against major rivals as Forex traders looked toward the safe-haven yen. Speculation that the Fed may respond to slowing growth with another rate cut in October also pressured the buck.

The other precious metals were also higher, with silver rising 2.2% while platinum and palladium added 0.9% and 2.1%, respectively.

At the Comex close: December gold gained $18.90 to $1,507.90; December silver climbed 38 cents to $17.68; January platinum added $8.30, to $894.40; and December palladium surged $34.80 to $1,665.50 an ounce.