Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold rose 0.7% to above $2,370 on elevated jobless claims and rising oil prices as traders positioned for tomorrows release of crucial payrolls data. Silver jumped more than 4% to $31.25 an ounce.

First-time filings for unemployment benefits rose to a four-week high of 229,000 in another sign that the red-hot labor market might finally be cooling off. The increase follows yesterdays ADP report that private payrolls added 152,000 jobs in May, the smallest number this year, and JOLTS data earlier this week showing job openings fell to a three-year low in April.

Tomorrows release of the more authoritative nonfarm payrolls report for May should offer greater clarity on the strength or weakness of the labor market and therefore the prospective course of interest rates. The historically strong job market has been a major thorn in the Feds side as it tries to drive down inflation.

Benchmark 10-year Treasury yields were virtually flat under 4.3% after falling over the previous five sessions. The dollar dipped 0.2% against major rivals despite a widely expected quarter-point rate cut from the ECB. A weaker buck supports gold and other commodities by making them cheaper in other currencies.

Oil bounced back for a second session, with WTI crude rallying 2% to more than $75.50 per barrel on signals that OPEC+ may decide against extending voluntary production cuts. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

Platinum and palladium climbed 1.1% and 1.5%, respectively.

At the New York spot close: gold gained $16.20 to $2,370.30; silver jumped $1.30 to $31.25; platinum piked up $11.30 to $1,011.60; and palladium advanced $13.60 to $938.10 an ounce.