Even as investors get more and more bullish about the outlook for the U.S. economy, the economy’s underlying foundation continues to erode.

In a report to be released this week, the Obama administration will boost its 10-year projection for the federal budget deficit to about $9 trillion – an increase of roughly $2 trillion, or 29%, from its prior projection, Fox News reported over the weekend, citing a source from the Office of Management and Budget (OMB).

The new cumulative deficit projection – for 2010-2019 – replaces the administration’s previous estimate of $7.108 trillion. Changes in budget projections – whether they result in a surplus or a deficit – are often refined as economic conditions change. This new projection was necessary because the recession has gone on for so long, causing federal tax receipts to plunge – and because the economic rebound will be prolonged and weak, resulting

In the currency market, the dollar climbed higher against the euro. Late Monday, the euro was trading at $1.3986 vs. $1.4027 on Thursday. “Last Thursday we had very disappointing jobs data and people are saying that maybe the recovery is in doubt,” said Marc Chandler, of Brown Brothers Harriman, and the hangover from that report gave the buck an early boost. But “the dollar’s rally … has run its course and now the dollar is beginning to weaken again,” Chandler added.

Chandler also cited the upcoming G-8 summit, saying that “people are nervous about getting too long (on the) dollar ahead of the events of this week.”

Of the day’s hard number, analysts at Action Economics said that “a better than expected non-manufacturing ISM report, helped Wall Street eventually turn positive, which weighed the dollar down once again.”

The Institute for Supply Management reported yesterday that its nonmanufacturing index rose to

Gold rose today, Friday, steadying above $931 per ounce as the dollar lost ground versus the euro, with deeper concerns over the U.S. economic outlook also underpinning the metal.

Spot gold stood at $931.70 by 1510 GMT, up from $928.65 late in New York. Earlier it rose to $933.90.

After a week of tracking a volatile dollar, gold is on course for a 0.6 percent fall on the week — retreating further from a four-month high near $990 hit in early June.

The precious metal found support above $931 after falling on Thursday, when weaker-than-expected U.S. non-farm payroll data sent investors piling into the relative safety of the dollar.

The U.S. currency  lost some ground against a basket of six currencies but remained broadly positive on Friday, with U.S. financial markets closed ahead of Independence Day.

Dollar moves have proved influential of late in determining immediate interest for bullion from foreign investors.

But the bleak jobs data

Gold was dead flat until an hour before New York opened on Thursday, at which point it commenced a daylong rally that pushed it higher, albeit not very dramatically, as it plodded to a finish at $938.90/oz., up $6.80. Overnight, gold is trending higher.

Platinum finally constructed a solid day, adding $20 during the Comex session and ending at $1185/oz., up $27. Overnight, platinum is pushing higher.

Silver buyers kept appearing after every selling spell, slowly inching the metal higher, and it closed just off its intraday highs at $13.99/oz., up 16 cents. Overnight, silver is sharply. (Click here for charts)

A strong day for platinum, though hardly a banner one for the other precious metals. Nevertheless, gold and silver both finished comfortably in the green.

The day’s disappointment had to be that gold and silver didn’t do even better, considering that the usual suspects were leaning in their favor,

Oil prices fell on Wednesday as the stronger dollar and rising U.S. product stocks outweighed supply concerns from Nigeria.

U.S. gasoline stocks rose by 3.9 million barrels in the week to June 19, well above analysts’ forecasts, as refiners cranked up output in the midst of the summer driving season.

Distillate stocks hit 10-year highs, while crude stocks showed a steep drop.

U.S. crude traded down 55 cents to $68.69 per barrel at 2:00 p.m. EDT (1800 GMT), reversing earlier gains. London Brent crude fell 49 cents to $68.31 a barrel.

“Crude futures are back down on the weight of a stronger dollar,” said Mark Waggoner, Excel Futures President from Huntington Beach, California. “The EIA inventory report also showed large increases in gasoline and distillate stocks and that’s dragging down crude.”

The U.S. dollar rose broadly and jumped against the Swiss franc as traders reported the Swiss National Bank was intervening in the market by selling the