Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold fell 1% to close above $1,840 on profit-taking after solid jobs data and hawkish Fed rhetoric rallied the dollar, pressuring alternative stores of value. The metal had rallied 2.5% to a seven-year high over the previous four sessions.

ADP reported the US economy added 235,000 private-sector jobs in December, more than forecast, signaling that hiring remains strong. Most occurred in the services sector, including hotels, restaurants, and transportation.

Separately, first time jobless claims fell to a 14-week low of 204,000 last week, beating expectations and indicating that layoffs are falling despite a slower economy.

The upbeat data depict a job market that might still be too hot for the Fed. The central bank has been trying to smother inflation by cooling the economy—and the job market—by raising interest rates from near-zero to nearly 4.5% in 10 months.

Kansas City Fed President Esther George said today that rates will have to stay above 5% for an extended period to bring inflation to heel. Similarly, St. Louis Fed President James Bullard said rates are not yet restrictive enough and should top 5% this year.

The dollar jumped 0.9% on the jobs data and hawkish Fed talk, weighing on gold and other commodities priced in it for global trade by making them more expensive in other currencies.

Benchmark 10-year Treasury yields fell again, however, as investors worry that the Fed will overshoot and force the US into recession.

The other precious metals were also lower. Silver dropped 2.3% while platinum fell 2.1% and palladium plunged 3.6%.

At the Comex close: February gold slipped 18.40 to $1,840.60; March silver slid 54 cents to $23.42; April platinum lost $22.70 to $1,069.60; and March palladium shed $64 to $1,732.70 an ounce.