Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold trimmed 0.3% to close under $2,020 despite a mild retreat in bond yields as US equities surged to new records, undercutting safe-haven assets.

The Dow Jones closed over 38,000 for the first time ever and the S&P 500 reached its second record close in as many sessions, led by technology shares driven by AI optimism and the prospect of falling interest rates.

The jump in risk appetite came in even though the Conference Board’s index of leading economic indicators fell in December for the 21st consecutive month. The index is designed to show whether the economy is getting better.

Benchmark 10-year Treasury yields retreated under 4.2% from 2024 highs reached last Friday. Yields have rebounded in recent weeks because of hawkish talk from Fed officials and generally improving US economic data on retail sales, jobless claims, and nonfarm payrolls.

The dollar was essentially flat ahead of next week's two-day Fed meeting on monetary policy. Traders almost universally expect the central bankers to leave interest rates unchanged.

The other precious metals were also lower, with silver sliding 1.9% while platinum and palladium lost 0.4% and 0.9%, respectively.

At the New York spot close: gold dipped $6.70 to $2,019.80; silver shed 42 cents to $22.18; platinum slid $4 to $903; and palladium shed $8.20 to $940.50 an ounce.