Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold edged up less than 0.1% to close above $1,322, extending its winning streak to 11 sessions as net-negative US economic data clouded the interest-rate outlook for 2018. The metal finished the week 1% higher for its third straight weekly rise.

US nonfarm payrolls added just 148,000 jobs in December, far fewer than forecast, while gains for the prior two months were revised lower by 9,000. The retailing sector took the biggest hit with 20,000 fewer jobs. The unemployment rate held at 4.1% while wages rose by 0.3%.

The ISM services index fell for a second month in December, as new orders and business activity dropped again. Separately, the trade deficit expanded 3.2% in November to the widest in five years, the Commerce Department reported today. With a larger deficit typically weighing on GDP, the Atlanta Fed cut its Q4 forecast to 2.7% from 3.2%.

On the plus side of the ledger, US factory orders rose in November for the fourth straight month, signaling solid demand for manufactured goods.

The dollar initially sank on the weak jobs data as traders speculated that the Fed may be less inclined to raise interest rates three times in 2018. Patrick Harker of the Philadelphia Fed President reinforced this sentiment by saying he expects only two hikes this year, one fewer than the Fed's forecast. The buck bounced back to a 0.1% gain late in the session but still lost 0.2% on the week for its third straight weekly decline.

The other precious metals were mixed on the day but higher for the week. Silver picked up 0.1% today and 0.8% this week. Platinum added 0.5% for a 4% weekly win. Palladium dropped 1.2% but still gained 2% this week.

At the Comex close: February gold edged up 70 cents to $1,322.30; March silver added 2 cents, to $17.29; April platinum gained $5 to $975.20; and March palladium lost $12.55 to $1,082.20 an ounce.