Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold rallied 1% to close near $1,979 after rising jobless claims solidified expectations that the Fed will pause interest rates, undercutting yields and the dollar and lifting alternative stores of value.

First-time filings for unemployment rose 28,000 to 261,000, the highest level in nearly two years, according to the Labor Department. While the bulk occurred mainly in California and Ohio, increases were recorded in more than half the US states.

Benchmark 10-year Treasure yields pulled back near 3.7% as traders speculated that the Fed will be even more likely to pause interest rates when it meets next week. Lower yields boost gold by decreasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

The dollar tracked lower with yields, shedding 0.7% against major rivals on the moderating rate view. A weaker dollar supports gold and other commodities by making them less expensive in other currencies, lifting overseas demand.

The other precious metals were mixed, with silver surging 3.5% while platinum and palladium lost 1% and 2.1%, respectively.

At the Comex close: August gold gained $20.20 to $1,978.60; July silver rose 82 cents to $24.35; July platinum dropped $10.70 to $1,013.90; and September palladium shed $29.60 to $1,358.30 an ounce.