Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped 0.5% to finish under $1,777 as the dollar rose on solid US jobless data and new omicron restrictions in Europe and Asia, undermining alternative stores of value. It was the metal's first down session in three.

First-time jobless claims dropped to 184,000 last week, the lowest level since 1969, as companies become increasingly hesitant to lay off temporary workers because of the tight labor market.

The highly transmissible omicron variant of the coronavirus is spurring new restrictions in several nations. The UK's Boris Johnson is requiring people to wear masks in public places and work from home to slow the spread. Denmark and China have also instituted new travel restrictions.

Risk appetite ebbed despite the positive jobless data, with the Nasdaq falling 1.6% while the S&P 500 slid 0.6% and the Dow was little changed. Benchmark 10-year Treasury yields edged up slightly to 1.49%, weighing on gold by increase the opportunity cost for holding it instead of bonds as a safe-haven asset.

Oil prices fell from a two-week high, with WTI dropping 2% to close under $71 per barrel, on concerns that more nations will impose restriction, curtailing demand. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The dollar rose 0.4% against major rivals on the renewed pandemic worries, pressuring gold and other commodities by making them more expensive in other currencies.

The other precious metals were sharply lower, with silver and platinum both falling 1.9% while palladium dropped 2.1%.

At the Comex close: February gold slipped $8.80 to $1,776.70; March silver fell 42 cents to $22.01; January platinum decline $18.20 to $937.70; and March palladium lost $39.20 to $1,813.20 an ounce.