Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold dipped 0.1% to hold above $1,986 as upbeat US data lifted stocks and the dollar, pressuring alternative stores of value. But the metal remained supported by ongoing turmoil in the Middle East.

The S&P flash services index rose to a three-month high of 50.9 in October, where any reading over 50 indicates expansion. The manufacturing sector pulled out of contraction for the first time since last spring, edging up to 50.

The US economy grew as much as 5% in Q3, defying expectations of a slowdown, according to the government’s preliminary estimate. Much of the rise has come from consumer spending, which powers around two-thirds of GDP.

But most forecasts for Q4 hover around 1.7% and the Conference Board still predicts a short recession in 2024 as higher interest rates pinch consumer pocketbooks and corporate profits.

Wall Street rallied on the upbeat data, with the Dow and S&P 500 gaining 0.6% and 0.7%, respectively, while the Nasdaq rose 0.9%. The dollar added 0.6% against major rivals, pressuring gold by making it pricier overseas.

Benchmark 10-year Treasury yields ticked lower as residual worries about the Hamas-Israel war helped demand for safe havens, limiting golds decline. Falling yields buoy the metal by decreasing the opportunity cost for holding it instead of bonds.

The other precious metals were lower, with silver sliding 0.4% while platinum dropped 1% and palladium lost 1.5%.

At the Comex close: December gold dipped $1.70 to $1,986.10; December silver shed nine cents to $23.12; January platinum fell $13.10 to $891.90; and December palladium dropped $11.70 to $1,127.50 an ounce.