Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.2% to close near $1,808 as ongoing concerns about inflation and geopolitics overcame a stronger dollar and higher Treasury yields after unexpectedly robust US jobs data. The metal notched a weekly rise of 1.2%, its best since mid-November.

The government nonfarm payrolls report showed a startling 476,000 new jobs were added in January, more than triple most estimates, and totals were revised sharply higher for the prior two months. While the unemployment rate rose from 3.9% to 4.0%, the job gains showed remarkable resilience in the labor market despite the resurgent pandemic.

Adding to inflation pressures, hourly wages jumped another 0.7% in January, lifting the 12-month increase to 5.7%, the biggest in decades.

Benchmark 10-year Treasury yields rose above 1.9% after the jobs data all but ensured a rate hike from the Fed in March. The dollar added 0.1% against major rivals for the same reason.

While higher yields and a stronger dollar typically pressure gold, the metal extended its weekly advance on demand for safe-havens and inflation hedges.

Crude prices pushed about $90 per barrel to a fresh seven-year high on a combination of rising demand and supply concerns because of the deep winter storm in Texas and geopolitical tensions in Europe and the Middle East. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

Meanwhile, saber-rattling between Russia and the West continued as the US and its allies dismissed Moscow's demands. More than 100,000 Russian troops and heavy weapons are massed on the Ukraine border, with both US and UK intelligence reportedly suggesting Russia is seeking a pretext for invasion.

The other precious metals were mixed for the day and week. Silver added 0.5% for a weekly rise of 0.8%. Platinum dropped 0.6% today but rose 1.8% this week. Palladium lost 1.2% on the session and 3.6% on the week.

At the Comex close: April gold gained $3.70 to $1,807.80; March silver added a dime, to $22.48; April platinum slid $6.10 to $1,024.20; and March palladium fell $27 to $2,290.70 an ounce.