Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold edged up 0.1% to close near $1,158 after a mixed U.S. jobs report boosted the dollar, capping demand for alternative stores of value. The metal gained 3.7% this week to score its biggest weekly win since late August.

The Labor Department reported today that nonfarm payrolls added 151,000 jobs last month. The total was fewer than expected and suggested a slowdown in overall job creation compared to prior months. However, the unemployment rate dipped to 4.9%, the lowest since 2008, and wages grew by 0.5% in January to achieve a 2.5% pace over the past 12 months, close to the post-recession high set in December.

The dollar halted its four-day slide, gaining 0.6% against major rivals as traders speculated that the Fed may raise rates this year after all. Whereas the market in Fed funds futures had been pricing in the next rate hike for 2017, it now sees a 50% chance in December, up from merely a 20% before the NFP release. Higher rates support a stronger dollar, which weighs on gold and other commodities by making them more expensive overseas.

Wall Street fell sharply after the report, with the Dow dropping 1.5% and the S&P 500 nearly 2%. The risk-off sentiment helped prevent losses for gold.

The other precious metals were down for the day but higher for the week. Silver dropped 0.5% to post a weekly gain of 3.8%. Platinum and palladium lost 0.3% and 3.3% today, respectively, but gained 3.4% and 0.5% this week.

At the Comex close: April gold added 20 cents, to $1,157.70; March silver dropped 7 cents to $14.78; April platinum dipped $2.60 to $903.70; and March palladium fell $16.90 to $498.70 an ounce.