AGE Daily Gold Update

AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.

1/4/2019: Gold rises for third straight week

Source: Bill Musgrave, American Gold Exchange

Austin — Gold slipped 0.7% today to close under $1,286 after dovish Fed comments and strong jobs data boosted risk appetite and cut demand for safe-haven assets. But the metal still rose 0.2% for the week, notching its third straight weekly win on worries about slowing global growth and jitters in financial markets.

Speaking to economists in Atlanta, Fed Chair Jerome Powell said the Fed will be patient with raising interest rates in 2019 because of volatility in equity and bond markets, suggesting rate hikes might end sooner than expected. Separately, Cleveland Fed President Loretta Mester echoed Powell's remarks by saying hikes could end now, depending on inflation and economic conditions.

Rising rates have been a major headwind for gold over the past two years because they boost the dollar, making gold more expensive in other currencies and thereby curtailing global demand. Any reduction in the number of future hikes would undermine the strength of the dollar and ultimately support higher gold prices.

The dollar edged down 0.1% on the dovish Fed remarks while Wall Street rallied sharply, with the Dow rising 3.3% and the Global Dow 2.4% as traders eyed the possible end of monetary tightening.

Also stoking risk appetite, US nonfarm payrolls added a whopping 312,000 new jobs in December, the most since last February and far more than forecast. The strong jobs data helped to alleviate concerns, at least for now, that the US economy is losing momentum and perhaps slipping toward recession.

The other precious metals were mixed on the day but higher for the week. Silver fell less than 0.1% today but gained 2.3% this week. Platinum surged 3.5% for a weekly rise of 3.9%. Palladium rallied 2.8% today and 4.3% this week.

At the Comex close: February gold slipped $9 to $1,285.80; March silver dipped a cent to $15.77; April platinum surged $27.90 to $827.20; and March palladium climbed $34.10 to 1,234.40 an ounce, a new all-time high.