Gold News & Info

Source:Bill Musgrave, American Gold Exchange

Austin— Gold dipped 0.2% to close under $1,263 as the dollar perked up on positive jobs data, reducing demand for alternative stores of value.

The Labor Department reported today that the number of job openings in the U.S. jumped to a record high in June. The so-called JOLTS index, a metric favored by Fed Chair Janet Yellen, showed job openings increased by the most in nearly two years, driven by a lack of qualified workers.

The dollar rose 0.3% in response to the jobs data as traders speculated that a tightening job market may eventually boost wages and support another rate increase from the Fed. A rising dollar weighs on gold and other commodities priced in it for international trade by making them more expensive overseas.

Weak wage growth has fueled worries about consumer spending, which comprises more than 70% of the economy. These fears were underscored today by a Fed report that American consumers have piled up more than $1 trillion in credit card debt as of June, a new record. In addition, the New York Fed reported separately that collective household debt reached record high of nearly $12.75 trillion in March. Combined with meager wage growth, high debt levels are expected to weigh on future spending and therefore GDP growth.

The other precious metals finished higher, with silver adding 0.8% while platinum and palladium picked up 0.3% and 1.5%, respectively.

At the Comex close: December gold dipped $2.10 to $1,262.60; September silver gained 14 cents to $16.39; October platinum added $2.90, to $974.50; and September palladium rose $13.20 to $898.40 an ounce.