Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold rebounded 0.7% to close above $1,845 despite robust jobs data as bargain-hunters entered the market after nine straight lower sessions. The metal still ended the week with a 1.1% loss on sharp gains in yields and the dollar.

The Labor Department reported nonfarm payrolls added a whopping 336,000 new jobs in September, the most in eight months and nearly double most forecasts. Totals for July and August were revised higher by a combined 119,000. The unemployment rate held steady at 3.8%.

For the Fed, which has been trying to cool the labor market with aggressive rate hikes, there was good news in an otherwise troubling report. Hourly earnings rose by just 0.2% or the second straight month, pulling the annual increase down to 4.2%, the lowest sine June 2021. Falling wage pressure typically translates into lower future inflation.

Benchmark 10-year Treasury yields marched back toward 4.8% on expectations that the Fed will stick to its hawkish stance of higher rates for longer. Rising yields weigh on gold by increasing the opportunity cost for holding it instead of bonds for safety.

With yields hovering around 16-year highs, many investors believe the Treasury market is doing the Fed’s work for it, stifling growth and therefore inflation through generationally high borrowing costs. Fed fund futures traders see only a 31% chance of another rate hike this year.

The dollar shifted from early gains to a loss of 0.3%, supporting gold as Forex traders digested the NFP data, especially the moderating wage pressure. The buck still closed the week 0.5% higher for its twelfth straight weekly rise.

The other precious metals were higher for the day and lower for the week. Silver recovered 3.3% today but retreated 3.3% for the week. Platinum added 2.2% but still lost 3.8% this week. Palladium picked up 1.6% for the session but shed 7.4% for the week.

At the Comex close: December gold gained $13.40 to $1,845.20; December silver added 70 cent, $21.72; January platinum rose $19 to $881.50; and December palladium climbed %18.20 to $1,163.10 and ounce.