Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold fell 0.8% to close under $1,740 as the dollar rallied on global growth worries after China instituted new Covid restrictions and investors weighed future rate hikes from the Fed.

China announced new societal restrictions after reporting its first Covid-related death in six months. Schools and businesses in parts of Beijing were closed and travel has been restricted nationally as part of the country's draconian zero-Covid policy.

The dollar jumped nearly 1% against major rivals as traders, concerned about the global economy, shunned riskier currencies. A rising dollar weighs on gold and other commodities by making them more expensive overseas.

New economic closures in China could also interfere with demand for gold and other commodities among Chinese investors and industries, further depressing prices.

After rallying 5% the previous week on softer inflation data, gold came under pressure late last week after several prominent Fed members warned that interest rates might have to go significantly higher to curb inflation despite the risk of recession from overtightening.

The Chicago Fed reported today that US economic growth weakened in October, according to its National Activity Index. The data comes one day after the Conference Board's index of leading economic indicators fell for the eight consecutive month, a streak consistent with recession.

The other precious metals were also lower, with silver sliding 0.6% while platinum and palladium lost 0.4% and 4.4%, respectively.

At the Comex close: December gold dropped $14.80 to $1,739.60; December silver slipped 12 cents to $20.87; January platinum fell $3.60 to $987.90; and December palladium shed $85.90 to $1,853 an ounce.