Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold rose 0.2% in choppy trading to close at $1,324 as weak wage data overcame stellar payrolls growth to dim the prospect of aggressive monetary tightening by the Fed. The metal managed a slight gain for the week, edging up less than 0.1%.

The US created an astonishing 313,000 jobs in February, the most in 18 months, and totals for January and December were revised higher by 54,000, according to nonfarm payrolls data released today. The unemployment rate was unchanged at 4.1%.

On the downside, however, earnings did not keep pace, with hourly wage growth falling from 2.8% to 2.6%, year-over-year.

Gold initially fell under $1,314 and the dollar rallied as the impressive headline jobs number prompted speculation that the Fed may increase the number of rate hikes this year. Rising rates boost the buck by attracting foreign exchange monies seeking higher yield, in turn pressuring gold and other commodities priced in dollars for global trade by making them more expensive overseas.

However, gold and the dollar reversed directions later in the session, with gold bouncing to a 0.2% gain while the dollar fell to a 0.1% loss, as traders concluded that the weak wage growth will lower inflationary pressure, preventing the Fed from becoming more aggressive on interest rates.

Gold's gains came despite a sharp increase in risk appetite, with all three main US stock indexes rising 1.8%.

The other precious metals were higher for the day and mixed for the week. Silver rose 0.7% today and 0.9% this week. Platinum climbed 1.3% but closed the week down 0.1%. Palladium jumped 2.2% on the day and was flat for the week.

At the Comex close: April gold gained $2.30 to $1,324; May silver added 11 cents, to $16.61; April platinum rose $11.90 to $964.20; and June palladium jumped $21.25 to $986.85 an ounce.