AGE Daily Gold Update

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

1/8/2025: Gold rises on soft ADP data

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold gained 0.3% to close at nearly a four-week high above $2,664 despite a stronger dollar as soft private payrolls data and comments from a Fed official lifted optimism that the central bank may continue cutting interest rates in 2025. Silver added 0.4% to finish at $30.45 an ounce.

ADP reported the US economy added just 122,000 jobs in the private sector in December, fewer than estimates of around 140,000. The pace of job creation is a focal point of Fed policy as it weighs further rate cuts. More job creation implies low unemployment, which tends to drive inflation higher.

Fed Governor Christopher Waller said today that inflation should continue falling this year and allow the Fed to reduce interest rates further. But he echoed the minutes of the Fed’s December meeting in acknowledging the risk of further inflation because of looming tariffs.

This Friday’s release of the government’s nonfarm payrolls report will give a more authoritative outlook on the strength of the labor market and hence the rate outlook.

Capping gold’s rise, the dollar rose 0.4% against major rivals on reports that President-elect Trump will invoke emergency measures to give him the legal footing to unilaterally impose new tariffs on allies and adversaries alike. A rising dollar is a headwind for gold because it makes bullion more expensive in other currencies.

Platinum and palladium picked up 0.7% and 2.6%, respectively.

At the New York spot close: gold gained $7.80 to $2,664.50; silver added 11 cents, to $30.45; platinum rose $7 to $969.80; and palladium advanced $24.30 to $933.90 an ounce.