Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold surged another 1.4% to close above $1,157, the highest since late October, as another spate of weak U.S. data eroded the dollar and spurred flights to safety. Rising 3.7% this week, the metal has now gained nearly 9% so far in 2016.

First-time jobless claims rose more than expected last week and layoffs spiked higher by 218% last month, suggesting momentum may be slowing in labor markets as economic conditions soften. In addition, productivity fell by 3% in the fourth quarter for the biggest decline in two years, putting downward pressure on profits and wage growth.

Coming one day after the ISM reported growth in the U.S. services sector slowing to a two-year low in January, the weak data fueled expectations that the Fed will have to delay future rate hikes, perhaps until next year. Dallas Fed President Robert Kaplan today acknowledged that "there has been some slowing" in the economy that will require "patience and analysis" by the Fed before additional tightening of monetary policy.

The dollar extended its sell-off to a fourth day on the souring rate view, supporting gold and other commodities denominated in it for international trade. The buck is down nearly 3% this week against a basket of rivals, marking its worst week since 2009.

The other metals all finished higher, with silver gaining 0.8% while platinum jumped 3% and palladium added 5 cents.

At the Comex close: April gold surged $16.20 to $1,157.50; March silver gained nearly 12 cents to $14.85; April platinum jumped $26.20 to $906.30; and March palladium edged up 5 cents to $515.60 an ounce.