Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold fell 1.3% to close under $1,970 after robust jobs data caused yields, stocks, and the dollar to jump, undercutting alternative assets. But the metal still posted a 1.3% gain for the week.

The government nonfarm payroll report showed the economy added a whopping 339,000 new jobs in May, far more than most forecasts. Employment gains for March and April were revised higher.

But the increase in hiring was also accompanied by a surge in the unemployment rate from 3.4% to 3.7%, the biggest one-month increase since the onset of the pandemic in March 2020, and a moderation in wage growth to 0.3% for the month.

Wall Street rallied on the upbeat headline jobs number, with the Dow rising 2% while the S&P 500 gained 1.5% and the Nasdaq 1%.

The passage by the Senate of the deal to raise the debt limit, thereby averting a damaging default, also bolstered risk sentiment.

Benchmark 10-year Treasury yields climbed back above 3.7% as investors gravitated away from safety. Higher yields weigh on gold by increasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

The dollar rose 0.4%, tracking higher with yields and further pressuring gold and other commodities priced in it from global trade.

The other precious metals were mixed for the day and week. Silver dropped 1% but held onto a weekly rise of 1.7%. Platinum slid 0.7% for the day and 2.4% for the week. Palladium picked up 0.9% but still lost 1.4% this week.

At the Comex close: August gold fell $25.90 to $1,969.60; July silver slid 24 cents to $23.75; July platinum dropped $6.60 to $1,003.50; and September palladium rose $12.80 to $1,403.50 an ounce.