Gold News & Info

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold jumped 1% to close above $1,386 as disappointing jobs data complicated the prospects for a September taper of monetary easing by the Fed, boosting demand for the metal as a store of value. The U.S. non-farms payroll report showed a meager 169,000 jobs added in August, well below expectations, while July's totals were slashed from 162,000 to merely 104,000, the worst growth in more than a year, and June's were revised lower by 16,000. The unemployment rate ticked down from 7.4% to 7.3%, but only because more people stopped looking for work, driving the labor force participation rate to 63.2%, its lowest level since 1978.

Traders viewed the subpar jobs report as diminishing the chances that quantitative easing will be reduced this month. Tantamount to printing money, the Fed's bond-buying program supports higher gold prices by devaluing the dollar and increasing the risk of long-term inflation. The dollar dropped on the report while dollar-denominated commodities and precious metals rallied. Oil surged 1.7% to its highest level since May 2011. Silver gained 2.7% while platinum and palladium added 0.9% and 1.4%, respectively.

At the Comex close: December gold jumped $13.50 $1,386.50; December silver gained 64 cents to $23.89; October platinum rose by $13.60 to $1,495.70; and December palladium added $9.65, to $696.85 an ounce.