AGE Daily Gold Update

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

3/6/2019: Gold gains on weak US data

Source: Bill Musgrave, American Gold Exchange

Austin — Gold gained 0.2% to close near $1,288, snapping a seven-session string of declines as soft US data pressured stocks and the dollar, boosting demand for safe havens.

ADP reported hiring in the private sector fell to a three-month low in February, with 183,000 new jobs added. While solid, the increase was far below January's 300,000. With GDP growth slowing in Q1 to 0.5%, according to the Atlanta Fed, some analysts believe peak strength in the labor market may be passing.

The Fed's Beige Book reported "slight-to-moderate" growth in 10 districts and no grow at all in two others. Almost all sectors were weaker, including retailing, manufacturing, and staffing services. Most districts anticipate slower growth in coming months.

The overall US trade deficit jumped to an all-time high in 2018, according to the Commerce Department. The widening gap is largely driven with by trade with China, with the US importing $891 billion more in goods than it exports. Rising trade deficits are often considered a headwind to growth.

US equities weakened on the downbeat data, with the Dow and Nasdaq dropping 0.4% and 0.8%, respectively. The dollar also slipped, supporting gold and other commodities priced in it for global trade by making them less expensive overseas.

The other precious metals were mixed, with silver and platinum dropping 0.1% and 1.2%, respectively, while palladium picked up 1.4%.

At the Comex close: April gold gained $2.90 to $1,287.60; May silver dipped 2 cents to $15.09; April platinum fell $9.90 to $828.10; June palladium rose $20.50 to $1,486.40 an ounce.