Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold fell 1.6% to close at $2,017 as better-than-expected jobs and consumer sentiment data lifted bond yields and the dollar, pressuring alternative assets. The metal dropped 3.6% for the week for its first weekly decline since early November.

The US economy added 199,000 new jobs in November, besting forecasts of 180,000 and lowering the annualized unemployment rate from 3.9% to 3.7%, the lowest in four months. The majority of the new positions were added in government and healthcare.

While the headline number showed resilience in the labor market, the report was softer than it appeared. Some 50,000 striking autoworkers and Hollywood writers returning to work, inflating the total.

Separately, consumer sentiment jumped to a four-month high in early December as inflation expectations cooled and American’s felt better about their finances. Despite the increase, sentiment remains solidly below pandemic levels.

Benchmark 10-year Treasury yields bounced higher as the upbeat data led traders to question when the Fed will pivot into rate cuts. Prior to the reports, Fed fund futures markets were pricing in a 60% chance of a rate cut by March. Afterward, the odds fell below 50%, with May becoming the most likely timeframe.

Rising yields tend to weigh on gold by increasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

Tracking higher with yields, the dollar added 0.4% against major rivals, pressuring gold and other commodities by making them pricier in other currencies.

The other precious metals were mixed for the day and lower for the week. Silver fell 3.3% today and 10.5% this week. Platinum slipped 0.8% for a weekly loss of 1.1%. Palladium shed 3% today and 5.8% this week.

At the Comex close: February gold lost $31.90 to $2,017; March silver shed 78 cents to $23.16; January platinum picked up $7.80 to $919.80; and March palladium declined $29.60 to $951.60 an ounce.