Daily Gold Update

Source:Dana Samuelson, American Gold Exchange

AustinGold continued to correct lower on profit taking, falling $9.00 to close the New York session at $2,606, just above the psychological support level of $2,600. Silver firmed up modestly, closing at $30.42, up 7 cents from yesterday.

The Fed released the minutes of their September meeting, after which the Fed issued a jumbo 50 basis point rate cut, their first rate cut since 2019. The minutes indicated that in addition to lone dissenter Governor Michelle Bowman, who favored a 25-point rate cut, several other board members also were in favor of a 25-point rate cut, but those members nonetheless voted for the 50-point cut. The minutes reiterated what Chair Powell said in his press conference following the jumbo rate cut, risks to inflation outlook have diminished while risks to the employment outlook have risen.

Both the value of US dollar on the US dollar index and the yield on the 10-year US treasury bill increased modestly following the release of the minutes. The dollar gained 0.35 or 0.34% to 102.89 on the index and the 10-year T-bill inched up 0.048 to 4.065% in afternoon trading. Inversely correlated, a rising dollar and/or rising yields weigh on gold, which does not offer a yield.

Equity markets in China, which whipsawed higher two weeks ago following the surprise bazooka stimulus announcement from the Chinese government, whipsawed lower today on a lack of follow thru by the Chinese government on specific new stimulus plans. China said it would hold a policy briefing on fiscal policy Saturday.

Retaliation by Israel against Iran gained momentum after Israeli Prime Minister Netanyahu spoke with US President Biden on the phone today for almost an hour, their first conversation since August. Israeli Defense Minister Yoav Gallant delivered a tough message to Iran in a speech to Israeli intelligence services today. Gallant said, “Our attack on Iran will be deadly, precise and above all surprising. They will not understand what happened and how it happened. They will see the results.”

At the New York spot close: gold fell $9.00 to $2,606.00; silver gained 7 cents to $30.42; platinum fell $3.00 to $948.70; and palladium gained $36.00 to $1042.90 an ounce.