Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.5% to close above $2,012 after soft US data undercut yields and the dollar by reinforcing the view that the Fed is probably with monetary tightening. It was the metal’s highest finish in three months.

Sales of new homes tumbled 5.6% in October, the government reported. The median price plunged nearly 18% compared to the same month last year while the supply rose 1.4%.

The S&P Global flash index showed the important US services sector grew slightly in November, posting a 50.6 where anything under 50 signals contraction. Most Americans are employed in service jobs. The manufacturing index dropped to 49.4.

Most economists on Wall Street now think a downturn in the US economy is likely in 2024, according to a new Bloomberg survey. A few months ago, fewer than half of the respondents thought so.

Benchmark 10-year Treasury yields fell under 4.4% as traders speculated that the soft data means the current rate-hike cycle is over. The likelihood of a pause in December stands at 97% and in January at 90%, according to CME FedWatch, while the odds of a rate cut in March is 25%.

Lower yields lift gold, a non-yielding asset, by decreasing the opportunity cost for holding it instead of bonds for safety.

Tracking lower with yields, the dollar slipped 0.2% to hover near a three-month low, boosting gold by making it cheaper overseas.

The other precious metals were mixed, with silver climbing 1.5% while platinum fell 1.5% and palladium dropped 1.4%.

At the Comex close: December gold gained $9.40 to $1,012.40; December silver rose 34 cents to $24.68; January platinum fell $13.70 to $923.20; and December palladium shed $14.70 to $1,060.50 an ounce.