Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Gold fell 0.7% for its first down session in four, closing under $1,211 as strong U.S. jobs data revived risk-appetite and reduced the demand for safe havens.

ADP reported that private employers added 241,000 jobs in December, more than expected, across a broad spectrum of industries. The data boosted optimism that Friday's release of the U.S. non-farm payrolls report will show similar strength, although the two reports have often diverged in the past.

Risk-appetite returned to the equities markets after heavy selling over the past several sessions. The Dow and S&P 500 each gained more than 1% and the Global Dow added half that much. U.S. Treasury bonds tracked gold lower as investors saw less need for safe haven assets.

Gold was further pressured by a rising dollar as the euro fell to a nine-year low behind uncertainty over the fate of Greece and rising deflationary pressures. Data released today showed consumer prices contracting for the first time since 2009 in the Eurozone. The ECB meets today decide on the course of action to prevent deeper deflation and stimulate the region's economy.

Minutes from the last Fed meeting were released today with few surprises and little impact on the gold price. The central bankers remain unlikely to raise rates before April at the earliest. Several continue to press concerns that inflation remains too low to tighten monetary policy, especially in light of downside risks to U.S. growth and employment because of the faltering global economy.

The other precious also finished lower, with silver dropping 0.5% while platinum dipped less than 0.1% and palladium dropped 1.1%.

At the Comex close were for February gold fell $8.70 to $1,210.70; March silver dropped 9 cents to $16.54; April platinum dipped 40 cents to $1,221; March palladium lost $9.05 to $791.35.