Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold rallied 1.3% to close near $1,817 as a dovish Fed continued to fuel demand for inflation hedges and safe-haven assets despite robust October jobs data. The metal notched a weekly rise of 1.8% for its highest finish since early September.

The US economy added 531,000 jobs last month and gains for the prior two months were revised higher by 235,000, according to the government's nonfarm payrolls report.

While the unemployment rate fell to 4.8%, only 104,000 people entered the workforce, pushing the labor-participation rate to under 62%, close to the lowest in 50 years.

Hourly wages jumped again, driving the 12-month increase to nearly 5%. Pay is rising because ongoing labor shortages and consumer inflation of 5.3%, the highest in decades, are forcing employers to raise compensation to attract workers.

Momentum in the recovery has prompted the Fed to announce this week that it will start a gradual removal of monetary stimulus in coming months. But the accompanying message was surprisingly dovish, reasserting that inflation is "transitory" and the central bank will be "patient" about raising interest rates.

The Fed has said repeatedly that it will let inflation run hot for longer than normal to help return the US economy to full employment after the pandemic.

Benchmark 10-year Treasury yields initially rose but then tumbled under 1.45% as the jobs report was viewed as having little effect on the Fed's view of the labor market. Worries about possible "policy error," in which the Fed either snuffs the recovery by raising rates too soon or courts runaway inflation by raising too late, also fueled flights to safety.

Falling yields support gold by reducing the opportunity cost for holding it instead of bonds as a safe-haven asset.

The dollar fell 0.1% against major rivals on the dimming rates outlook, supporting gold and other commodities priced in it for global trace by making them cheaper in other currencies.

The other precious metals were higher for the day and week. Silver added 1% for weekly win of 0.9%. Platinum picked up 0.6% today and 1.5% this week. Palladium climbed 1.6% for the day and 2.4% for the week.

At the Comex close: December gold gained $23.30 to $1,816.80; December silver added 25 cents, to $24.16; January platinum picked up $6.50 to $1,035.80; and December palladium climbed $31.20 to $2,027.60 an ounce.