Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot #gold slipped 0.4% to close under $2,426 as traders took profits after a big week. The metal still rose 1.9% since Monday, boosted by softer US jobs data and dovish comments from the Fed. Silver dipped 0.3% to finish at $28.25, notching a 1.4% weekly rise.

The economy added a paltry 114,000 jobs in July, according to the governments nonfarm payrolls report, lifting the unemployment rate to 4.3%, the highest in nearly three years. Wages increased by 3.6% over the past 12 months, the least in more than three years.

Following this weeks Fed meeting, Jerome Powell said policy makers are currently more focused on the softening labor market than inflation, which has been trending downward for months. Todays jobs data is likely to increase the likelihood that they will reduce interest rates in September, which Powell said was already on the table.

Fed fund futures are now fully pricing-in a quarter-point rate cut in September, with a 70% likelihood of a half-point cut.

Gold futures immediately rocketed to a new all-time high above $2,522 on the jobs report before falling back on profit taking.

Benchmark 10-year Treasury yields dropped to the lowest since last December on the shifting rate view. The 2-year Treasury, more sensitive to interest rates, plunged to the lowest level since Amy 2023. Falling yields support gold by decreasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

Tracking lower with yields, the dollar tumbled 1.1% against major rivals.

Gold was also supported this week by flights to safety as the conflict in the Middle East took a tumultuous turn, threatening to widen the Gaza war after Hamas leader was assassinated in the Tehran.

Platinum dipped 0.3% today but gained 3.3% this week. Palladium shed 1.4% for the session and 0.5% for the week.

At the New York spot close: gold slipped $9.30 to $2,425.70; silver slid 9 cents to $28.25; platinum dipped $2.90 to $967.60; and palladium shed $12.60 to $882.50 an ounce.