Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.3% to close at $1,923 despite rising Treasury yields as bargain-hunters entered the market ahead of this week's Jackson Hole conference. It was the metal's second straight winning session after a nine-day slide.

Traders avidly await Friday's annual Jackson Hole conference of global central bankers, anticipating Fed Chair Jerome Powell's keynote speech will give further clues about future interest rates. Powell is expected to touch on short- and long-term rate policy, including the so-called neutral rate at which the economy is at full strength and prices are stable.

Benchmark 10-year Treasury yields continued to climb, pushing above 4.3% to new 16-year high, as bond traders begin to adapt to the idea that rates are likely stay higher for longer even though inflation has come down considerably over the past six months.

Higher yields typically pressure gold by increasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

The dollar slipped 0.1% against major rivals after China's central bank delivered a smaller-than-expected rate cut to support its beleaguered economy. A weaker dollar lifts gold by making it less expensive overseas.

Gold also received safe-haven bids from ongoing worries about China's imploding real estate market. Giant property developer China Evergrande filed for Chapter 15 bankruptcy protection late last week. The move came only days after Country Garden, China's biggest developer, defaulted on $1 billion in loan payments.

The other precious metals were mixed, with silver rising 2.7% while platinum and palladium fell 0.2% and 1.7%, respectively.

At the Comex close December gold gained $6.50 to $1,923; September silver climbed 61 cents to $23.34; October platinum slipped $1.50 to $913.50; and September palladium shed $20.90 to $1,239.10 an ounce.