Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slid 0.4% to close under $1,249 after strong payrolls data boosted the dollar and global equities, cutting demand for alternative stores of value. The metal fell 2.6% for the week, its biggest weekly drop since May

US nonfarm payrolls added 228,000 jobs in November, beating expectations, while unemployment held near a 17-year low at 4.1%. The only black spot in an otherwise shining report was worker pay, which grew at a tepid at 0.2%.

The dollar added 0.2% against major rivals, posting its fifth straight winning session, as robust job growth all but guarantees that the Fed will raise interest rates when it meets next week. Higher rates support the dollar by attracting forex money seeking yield. A strong dollar, in turn, weighs on gold and commodities priced in it for global trade by making them more expensive in other currencies

Equities also rallied, with the Dow and Global Dow posting gains of 0.5%, as investors embraced risk assets. Meanwhile, the Senate and House passed legislation to prevent a damaging government shut down for two weeks.

The other precious metals were mostly lower. Platinum dropped 1.2% for a weekly loss of 6.1%. Palladium fell 0.7% today and 2% this week. Silver edged up 0.1% today but still lost 3.5% this week.

At the Comex close: February gold slid $4.70 to $1,248.40; March silver added 2 cents, to $15.82; January platinum dropped $9.80 to $883.70; and March palladium retreated $5.55 to $996.40 an ounce.