Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold fell 1.1% to close under $2,715 as rising Treasury yields and a stronger dollar prompted traders to take profits from yesterday's all-time high above $2,744. Silver shed 3.4% to finish at $33.64 an ounce.

Benchmark 10-year Treasury yields rose to a three-month high above 4.2% as investors braced for the prospect of slower rate cuts from the Fed. Yields weigh on gold by increasing the opportunity cost for holding it instead of bonds.

Stronger-than-expected recent data suggesting resilience in the economy has lowered expectations of another jumbo rate cut in November. Fed funds futures trading posits less than 10% of a chance for a half-point reduction at the Fed's next meeting, down from more than 50% just a few weeks ago.

Growing concerns about the ramifications of the presidential election for the budget deficit and national debt are also lifting yields. The Committee for a Responsible Budget published calculations showing the budget proposed by Kamala Harris would increase the deficit by $3.5 trillion over 10 years, while Donald Trump's tax plans would increase it by $7.5 trillion.

The dollar added 0.4% against major rivals and hit a three-month high against the yen as Fed officials have increasingly called for slower rate cuts. A rising dollar pressures gold and other commodities by making them pricier on other currencies.

Platinum and palladium lost 1.3% and 1.5%, respectively.

At the New York spot close: gold dropped $29.80 to $2,714.40; silver slid $1.19 to $33.64; platinum lost $13.20 to $1,019.18; and palladium retreated $16.70 to $1,064.70 an ounce.