Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinSpot gold dipped 0.2% to close under $2,022 as Wall Street rose on strong showings by mega-cap stocks, undermining demand for safe-haven assets. Traders also hedged positions in case tomorrow’s CPI release comes in hotter than expected, pressuring the gold price.

Stocks of corporations like Microsoft, Google, and Amazon rallied today on strong expected earnings when quarterly revenue reports begin flowing in later this week. The Dow and S&P 500 rose 0.5% and 0.6%, respectively, while the Nasdaq picked up 0.8%.

Benchmark 10-year Treasury yields edged up less than two basis points ahead of the consumer price index print on Thursday. Annual inflation is expected to tick up to 3.2% from 3.1% in November, but core inflation is seen as declining to 3.8% from 4% previously.

The dollar was also little changed, edging up 0.1% against major rivals. A stronger buck weighs on gold by making it pricier overseas, while rising yields increase the opportunity cost for holding it instead of bonds for safety.

The other precious metals were mixed, with silver slipping less than 0.1% and platinum dropped 1.5% and palladium gained 1.9%.

At the New York spot close: gold dipped $4.70 to $2,021.70; silver inched down 2 cents to $22.88; platinum shed $13.90 to $929.60; and palladium picked up $18.30 to $995.20 an ounce.