Gold News & Info

Source:Bill Musgrave, American Gold Exchange

Austin— Extending last week's 2.4% rise, gold added another 0.9% to close at a 12-week high above $1,232 as disappointing jobs data and uncertainty about Donald Trump's policies boosted safe-haven demand.

Last Friday's subpar nonfarm payrolls report continued to spark movement into gold as traders recalibrate expectations for future interest rate hikes from the Fed. While a solid 227,000 jobs were added, the unemployment rate ticked up and wage-growth slowed. The pace of rising wages is one the Fed's main metrics for inflation expectations, and will influence the timing of future hikes.

Investor worries about Trump policies also prompted flights to safety, with Treasury prices rising and U.S. equity indexes rolling back. Concerns about upcoming French elections also boosted Treasurys and gold on flights to safety as far-right candidate launched her presidential campaign over the weekend, vowing to exit the EU.

Trump has provided little information about enacting his campaign promises to rebuild infrastructure while slashing taxes since becoming president. This lack of policy detail, along with his controversial executive orders and combative engagements with foreign leaders, has weighed on risk appetite.

Gold's gains came despite a modest rise in the dollar, which picked up 0.2% against foreign rivals after the ECB said the Eurozone economy is still too weak for the removal of quantitative easing. Tantamount to printing money, QE cheapens a nation's currency by increasing available liquidity.

The other precious metals also finished higher, with silver jumping 1.2% while platinum and palladium added 0.7% and 3.4%, respectively.

At the Comex close: April gold gained $11.30 to $1,232.10; March silver jumped 21 cents to $17.69, also a 12-week high; April platinum rose $7.40 to $1,014.10; and March palladium climbed $25.30 to $774.30 an ounce.