Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold was little changed, dipping 60 cents to close under $1,930 as falling inflation and upbeat economic data fueled risk appetite, pressuring safe-haven assets. The metal ended the week 0.1% higher for its sixth straight weekly rise, the longest streak since mid-2020.

The Fed's favorite inflation gauge, the PCI index, showed the cost for US goods and services rose a scant 0.1% in December, the smallest increase in 14 months, with the annual rate falling to 5%. The so-called core rate, less volatile food and energy costs, dropped to 4.4%, also a 14-month low.

Meanwhile, consumer sentiment improved in January, according to the University of Michigan final survey, as Americans became more optimistic that inflation will continue to fall. And pending US home sales ended a six-month decline in December, rising 2.5%.

Wall Street ran with the good news. The Dow and S&P 500 added 0.4% and 0.6%, respectively, while the Nasdaq climbed 1.4%.

Benchmark 10-year Treasury yields pushed back above 3.5% as traders shifted away from safety. Higher yields weigh on gold by increasing the opportunity cost for holding it instead of bonds.

The dollar tracked higher with yields, adding 0.2% against major rivals. A stronger dollar pressures gold and other commodities by making them pricier in other currencies.

The other precious metals were lower for the day and week. Silver dropped 1.7% for a weekly decline of 1.3%. Platinum lost 0.6% today and 3% this week. Palladium shed another 3.9% for a weekly loss of 7.2%.

At the Comex close: February gold dipped 60 cents to $1,929.40; March silver lost 40 cents to $23.62; April platinum shed $6.20 to $1,016.80; and March palladium declined by $64.10 to $1,599.70 an ounce.