Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

AustinNew York spot gold gained 0.9% to close at a new record above $2,651 after weak consumer data and last week's jumbo rate cut from the Fed pressured yields and the dollar, boosting alternatives stores of value. The metal has risen 2.5% over five straight winning sessions. Silver jumped 4.4% to finish at $32.11 an ounce.

US consumer confidence plunged in September by the most since 2021 as Americans fret about the cooling job market, softer overall business conditions, and their future incomes. The upcoming presidential election, which could hinge on views about who can best handle the economy, was also a concern. Consumer spending accounts for some 70% of GDP.

Benchmark 10-year Treasury yields retreated slightly after the confidence data, boosting gold by decreasing the opportunity cost for holding it instead of bonds for safety.

The dollar fell harder, losing 0.4% against major rivals led the yuan, which rallied sharply after China unveiled the biggest stimulus plan since the depth of the Covid pandemic. A weaker dollar lifts gold and other commodities by making them cheaper in other currencies.

The Fed's half-point rate cut and dovish outlook for future cuts continue to fuel inflows into gold.

Platinum and palladium rose on expected commodity-demand driven by China's stimulus program, adding 2.7% and 1.4%, respectively.

At the New York spot close: gold gained $24.70 to $2,651.20; silver surged $1.34 to $32.11; platinum picked up $25.90 to $987.70l and palladium advanced $15 to $1,060.10 an ounce.