Precious Metals Market Report by Bill Musgrave – American Gold Exchange
Gold forged back above $1,200, gaining 0.8% to close near $1,209, as a rally in oil prices and disappointing jobs data boosted demand for the metal as a store of value.
Crude oil jumped 0.6% after an official report showed U.S. inventories have fallen more than expected. The small rebound prompted traders to buy gold as a hedge against the rising inflation that typically accompanies higher energy costs. Oil has declined around 36% this year because of rising U.S. shale oil production and a sharply higher dollar.
Gold was also supported by reports that private-sector hiring fell short of expectations. ADP said 208,000 jobs were added in November, whereas most analyst were forecasting around 230,000. The more important data from the U.S. non-farm payrolls report is due on Friday. The timing of the Fed’s decision to raise interest rates will be largely contingent on the strength of the job market and signs of rising inflation, which remains below Fed targets.
The other metals were mixed, with silver slipping 0.3% and palladium dropping 0.8% while platinum added 0.8%
At the Comex close: February gold gained $9.30 to $1,208.70; March silver slipped 4 cents to $16.41; January platinum added $10, to to $1,227.50; and March palladium dropped $6.20 to $797.55 an ounce.