Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold fell another 0.4% to close at $2,600, the lowest level since late September, as Treasury yields rose and the dollar rallied, pressuring alternative stores of value. Silver slipped 15 cents to finish at $30.69 an ounce.

A second Trump administration is expected to deliver tax cuts and deregulation that could drive incomes and corporate profits higher. Combined with the blanket tariffs promised by the President-elect, these policies also have the potential to be highly inflationary, slowing the Fed’s process of unwinding the highest interest rates in a generation.

The dollar added another 0.5% to reach a five-month high against major rivals of the shifting rate view. Tomorrow’s release of the October CPI should provide greater clarity on the current inflation outlook.

Benchmark 10-year Treasury yields climbed to a four-month high above 4.4% as investors continued to shift out of safe-haven assets like government debt and gold.

Higher yields weigh on gold by increasing the opportunity cost for holding it instead of bonds, while a stronger dollar makes gold and other commodities more expensive overseas, reducing demand.

Platinum fell 1.7% while palladium shed 4.2%.

At the New York spot close: gold fell $11.20 to $2,600; silver slipped 15 cents to $30.69; platinum pulled back by $16.60 to $947.60; and palladium retreated $41.40 to $940.90 an ounce.