Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold fell 3.4% to close under $2,617 despite pullbacks in Treasury yields and the dollar as news of a possible ceasefire in Lebanon and some unwinding of the Trump-trade prompted investors to take profits from bullion’s five-day rally. Silver shed 3.5% to end at $30.21 an ounce.

Israel’s cabinet will meet tomorrow to approve a ceasefire with Hezbollah, according to a senior Israeli official. Hostilities with the Iran-backed military group had increased dramatically in the past few months as a second front in the Gaza war. The agreement would be the first substantial de-escalation of tensions in the troubled region since the war began.

Meanwhile, some of the so-called Trump trade began to unwind after the nomination of Scott Bessent for Treasury Secretary settled market nerves about the deficit. President-elect Trump’s aggressive policies on tariffs, tax cuts, and immigration are widely expected to increase the federal deficit while rekindling inflation, driving yields and the dollar to multi-month highs. A savvy veteran of financial markets, Bessent is expected to maintain fiscal discipline while helping to blunt the inflationary consequences of tariffs.

Benchmark 10-year Treasury yields fell back under 4.3% after the Bessent nomination and ceasefire news, while the dollar tracked lower by 0.7%.

Platinum and palladium fell 3% and 3.6%, respectively.

At the New York spot close: gold fell $93.10 to $2,626.80; silver shed $1.10 to $30.21; platinum retreated $29.50 to $940.25; and palladium dropped $37.20 to $982.10 an ounce.