Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold jumped 0.7% to close at a four-month high near $1,253 as trade jitters and disappointing jobs data weakened the dollar and hammered stocks, boosting demand for alternative assets. The metal finished the week 2.2% higher for its biggest weekly win since late August.

Confusion over US trade relations with China continued to dominate the markets after White House trade adviser Peter Navarro said today that higher tariffs are likely if no deal is reached in 90 days. Investor sentiment has whipsawed in the past week after the White House first agreed to a 90-day moratorium on new tariffs against China, fueling optimism that the trade war is ending, then suggested a lasting trade agreement is unlikely.

The Dow plunged as much as 600 points, nearly 2.5%, as traders fear an expansion of the trade war will harm US growth and undermine corporate profits. Business investment, one of the main drivers of the economy, has all but dried up in the third and fourth quarters as companies reallocate capital toward higher costs on foreign goods and materials like steel.

Also weighing on risk appetite, US nonfarm payrolls were weaker than expected in November, with only 155,000 new jobs added. Unemployment remained at a 49-year low of 3.7%, however, and hourly wages rose by six cents, the most in nine years.

The dollar slipped 0.2% against major rivals on the soft jobs report. A weaker dollar supports gold and other commodities by making them less expensive overseas.

Sharply higher oil prices also lifted gold after Russia and OPEC agreed to cut production by 1.2 million barrels a day to reduce the global supply glut. Brent crude rose 2.7% for a weekly increase of 3%. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were higher for the day and mixed for the week. Silver gained 1.3% for a weekly rise of 3.4%. Platinum added 0.1% today but lost 1.2% this week. Palladium jumped 2.5% for a weekly rise of 2.3%.

A the Comex close: February gold rose $9 to 1,252.60; March silver jumped 19 cents to $14.70; January platinum added 80 cents, to $790.40; and March palladium climbed $28.90 to $1,170.80 an ounce.