AGE Daily Gold Update

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

12/6/2024: Gold gains on jobs, rate view

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold gained 0.5% to close near $2,639 after mixed US payrolls data reinforced expectations that the Fed will cut interest rates this month. Bullion still slid 0.7% for the week, under pressure from a drop in the risk premium associated with geopolitical turmoil in France. Silver added 0.2% to finish at $31.19, posting a 1.6% weekly rise.

US nonfarm payrolls added 227,000 new jobs in November as hiring returned to normal after being depressed by two severe hurricanes in October. However, the unemployment rate ticked up to 4.2% from 4.1% the month before, and the six-month average of fewer than 150,000 new jobs per month is considered inadequate to sustain the economy.

The mixed data increased the odds of a quarter-point rate cut from the Fed this month to around 85%, up from around 72% yesterday, according to Fed fund futures trading. The dovish rate view was reinforced by several Fed speakers today, including Austan Goolsby, Mary Daly, and Beth Hammock, who indicated that rates need to come down from current levels.

Treasure yield and the dollar both edged down immediately after the payroll report, further supporting gold.

But bullion still finished lower for the week as market tensions eased after the no-confidence vote against French PM Michel Barnier prompted his resignation. French President Macron promised a swift replacement, causing the yield gap between French and German government bonds to narrow and the risk premium on gold to fade.

Platinum fell 1% today and 2.2% this week. Palladium slid 0.7% for a weekly loss of 2.3%.

At the New York spot close: gold gained $12 to $2,638.60; silver added 5 cents, to $31.19; platinum shed $9.25 to $927.95; and palladium retreated $6.95 to $963.15 an ounce.