Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold dropped 0.7% to close near $1,269 after strong US services data offset a lackluster jobs report to boost the dollar, eroding demand for alternative assets. The metal finished the week 0.2% lower.

US nonfarm payrolls added 261,000 jobs in October, and the BLS revised September's 33,000 contraction to a meager gain of 18,000. While the top-line number looks solid, it was around 70,000 lower than most forecasts, and the two-month average of fewer than 140,000 jobs gained was disappointing.

The unemployment rate dipped by ten basis-points to 4.1%, but the decline was the result primarily of 76,000 fewer people in the work force. And perhaps most alarming, wages fell by a penny an hour and annualized wage growth dropped to 2.4% from 2.8%.

The dollar initially plunged after the jobs report while gold perked up near $1,279 as traders speculated that the Fed may be less inclined to raise interest three times next year, as scheduled.

However, the buck rallied to a 0.3% gain while gold retreated after the ISM reported that its services index rose to a 12-year high in October, mirroring strength in the manufacturing survey released earlier this week.

The other precious metals also fell but still posted weekly gains. Silver dropped 1.8% but held a 0.5% rise for the week. Platinum dropped 0.6% today but added 0.8% this week. Palladium slipped 0.3% for a weekly win of 3.5%.

At the Comex close: December gold dropped $8.90 to $1,269.20; December silver lost 31 cents to $16.83; January platinum slid $5.90 to $921.90; and December palladium slipped $2.50 to $991.50 an ounce.