Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold edged down 0.1% to close under $1,758 as Treasury yields rose despite a surprisingly weak job report, pressuring alternative assets. The metal finished the week down $1.

The economy added just 194,000 new jobs in September, less than half of most forecasts, as the Delta variant continued to take its toll on the labor market. It was the second straight month of disappointing hiring, raising concerns that a lack of workers could impede the recovery.

While the unemployment rate fell to 4.8% from 5.2% in August, the change was attributed to 183,000 Americans leaving the workforce.

Gold initially surged 1% after the meager jobs report on speculation that the Fed might be less inclined to begin tapering quantitative easing. But the metal quickly surrendered those gains as traders concluded that the central bank, increasingly more worried about inflation than unemployment, will still reduce monetary stimulus when it meets again in November.

Treasury action reflected those taper bets, with benchmark 10-year yields pushing above 1.6%. Reductions in quantitative easing mean the Fed buys fewer bonds, putting downward pressure prices and upward pressure on yields. Higher yields weigh on gold by increasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

Stocks and the dollar were little changed.

The other precious metals were higher for the day and week. Silver added 0.2% for a weekly rise of 0.7%. Platinum jumped 4.4% today and 5.6% this week. Palladium rallied 6% for a weekly gain of 8.9%.

At the Comex close: December gold inched down $1.80 to $1,757.40; December silver added a nickel, to $22.71; January platinum climbed $42.90 to $1,028.20; and December palladium picked up $118 to $2,073 an ounce.