Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinHolding near its recent peak, gold inched down less than 0.1% to close just under $1,776 after mixed US data pressured Treasury yields and lifted the dollar. The metal jumped to an intraday high above 1,788 before slipping back on profit-taking.

US retail sales were surprisingly strong in October, climbing 1.3%, as consumer continued to spend despite higher prices and interest rates. It was the biggest rise in eight months, stymying the Fed's goal of slowing the economy to slow inflation.

On the other side of the ledger, US manufacturing weakened further, with industrial production falling 0.1% while capacity utilization also slipped. Factory output has been slowing for three months because of weaker global demand, higher interest rates, and stubborn supply chain problems.

Fed talk also balanced out. Fed Governor Christopher Waller said today that the recent decline in consumer and wholesale inflation makes him comfortable with slowing the pace of rate hikes. San Francisco's Mary Daly, on the other hand, said the Fed still needs to push its benchmark rate above 5%, at least 100 basis points higher than today.

Benchmark 10-year Treasury yields pulled back under 3.7% as traders weighed the possibility of a more dovish Fed. Falling yields support gold by decreasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

The dollar edged up 0.1% against major rivals on mild flights to safety after Poland reported misfired missiles from Ukraine killed two of its citizens, prompting concerns that mishaps could escalate the conflict. A rising dollar weighs on gold by making it pricier overseas.

The other precious metals were mostly higher, with silver and palladium adding less than 0.1% each while platinum dropped 0.6%.

At the Comex close: December gold dipped $1 to $1,775.80; December silver added one cent, to $21.52; January platinum dropped $6.20 to $1,016.20; and December palladium prices climbed $3 to $2,081.30 an ounce.