Daily Gold Update

Source:Matt Warden, American Gold Exchange

AustinGold moved closer to record highs on Wednesday, supported by a drop in U.S. bond yields and anticipated interest rate cuts from major central banks. Ongoing geopolitical tensions also provided additional safe-haven appeal for the precious metal. Spot gold increased by 0.4%, reaching $2,678.50 per ounce, approaching its previous record of $2,685.40 set last month.

The U.S. Federal Reserve is expected to cut interest rates 25 basis points in November, while weaker inflation data from Europe and the UK have increased the likelihood of monetary easing by the ECB and BoE. This has pushed down yields and provided a boost to gold prices.

U.S. Treasury yields dropped to their lowest levels in over a week, improving gold's appeal as the non-yielding metal typically shines in a low interest rate environment. According to the CME FedWatch tool, there is now a 96% likelihood of a 25-basis-point rate cut announcement by the U.S. Federal Reserve at the conclusion of their November 6-7 FOMC meeting.

The European Central Bank is expected to announce another rate cut this coming Thursday, and a decline in British inflation has increased the chances the Bank of England will cut rates a next month’s meeting.

In addition to anticipated rate cuts by central banks, gold demand is well-supported by loose fiscal policy, growing Middle East geopolitical tensions, accelerating de-dollarization, and uncertainties surrounding the upcoming U.S. Presidential elections.

Silver matched gold with a 0.4% increase, while platinum and palladium rose 1% and 1.6%, respectively, on the day.

At the New York spot close: December gold increased $10.90 to $2,689.80; December silver rose $0.13 to $31.89; January platinum rose $10.40 to $1,007.00; and December palladium moved $16.10 higher to $1028.00.