Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold dipped 0.2% to hold near a three-month high above $2,763 as rising risk appetite lifted Treasury yields and prompted traders to take profits from bullion’s recent rally. Silver shed 1.8% to finish at $30.67 an ounce.

Speaking at the World Economic Forum in Davos, President Trump said he will “demand” lower interest rates in the US, and all other nations should follow suit in reducing rates. He provided no details, either on monetary policy or tariffs.

The Dow rose 0.8% and the S&P 500 hit a record high as traders digested mixed earnings reports and the potentially bullish effects of Trump’s call for lower interest rates.

Benchmark 10-year Treasury yields climbed back above 4.65% on the shift toward risk assets, pressuring gold by increasing the opportunity cost for holding it instead of bonds for safety. The dollar was little changed.

Gold has rallied nearly 3.5% over the past week, hitting the highest prices since the end of October, on the dovish outlook for interest rates because of softening inflation, and economic uncertainty over the trade policies of the new Trump administration.

Platinum and palladium dropped 1.5% and 0.1%, respectively.

At the New York spot close: gold dipped $4.50 to $2,763.10; silver shed 57 cents to $30.67; platinum dropped $14.50 to $943.75; and palladium inched down $1.30 to $997.80 an ounce.