Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold dipped 0.1% to close above $1,654 as elevated bond yields and a higher dollar offset safe-haven buying due to soft US data.

S&P Global reported US business activity contracted for a fourth straight month in October, the latest signals that the combined effects of high inflation and rising interest rates are slowing the economy. "The US economic downturn has gathered significant momentum," the report underscored, and "confidence has deteriorated sharply."

Wall Street extended Friday's gains on speculation that a cloudier economic outlook will slow the Fed's hyper-aggressive rate hikes. The Dow rose 1.3%, the S&P 500 1.2%, and Nasdaq 0.9%.

Benchmark 10-year Treasury yields held near recent highs above 4.2%, weighing on gold by increasing the opportunity cost for holding it instead of bonds. The dollar picked up 0.1% against major rivals, pressuring gold and other commodities by making them pricier overseas.

The other precious metals were mixed. Silver added 0.7% while platinum and palladium dropped 0.8% and 1.9%, respectively.

At the Comex close: December gold dipped $2.20 to $1,654.10; December silver climbed 12 cents to $19.19; January platinum dropped $7.30 to $926.60; and December palladium shed $37.70 to $1,967.80 an ounce.