Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold had its best day in a month, gaining 0.9% to close above $1,932, after softer government jobs data weakened the dollar and boosted alternative stores of value. The metal rose 0.2% for the week.

The Labor Department reported US nonfarm payrolls added a meager 209,000 jobs in June, the smallest increase in 30 months, and the total for April and May was revised lower by 110,000. The June rise was even weaker than the headline number, as nearly 30% of the new jobs were created by the government.

Coming one day after ADP reported nearly 500,000 private-sector jobs were added last month, the more authoritative NFP data suggests that the labor market, rather than charging forward, may be starting to stagger under the weight of sharply higher interest rates.

While hiring was weaker, wage growth nonetheless remained strong, suggesting the Fed will most likely hike rates again this month. Fed fund futures traders continue to project a 92% likelihood of a quarter-point increase. But bets on another hike this year diminished to no higher than 35% for any subsequent Fed meeting.

The dollar fell nearly 1% to a two-week low on the falling longer-term rate projections, boosting gold and other commodities by making them less expensive in other currencies. Benchmark 10-year Treasury yields were little-changed, hovering around a four-month high above 4%.

The other precious metals were also higher for the day and week. Silver jumped 1.7% for a weekly win of 1.2%. Platinum added 1% today and 0.6% this week. Palladium picked up 0.5% for a weekly rise of 1.9%.

At the Comex close: August gold gained $17.10 to $1,932.50; September silver rose 40 cents to $23.29; October platinum picked up $8.80 to $918.50; and September palladium climbed $5.70 to $1,245.10 an ounce.