Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold rose 0.7% to close near $2,639 on safe-haven inflows as geopolitical tensions rose and Treasury yields and the dollar retreated in light post-holiday trading. Silver added 0.1% to finish at $30.05.

Russia stepped up its aggression against Ukraine on Christmas day, attacking energy systems and major cities with drones, cruise missiles, and ballistic rockets. The apparent goal was to damage the power grid and shut off heat and electricity during the winter months. In response, President Biden asked the Department of Defense to surge additional weapons into Ukraine.

Separately, the government of Finland accused Russia of deploying a shadow fleet of ships to disrupt the infrastructure of NATO nations that support Ukraine. The accusation came after a fourth submarine data cable was mysteriously cut in the Baltic.

Benchmark 10-year Treasury yields pulled back slightly as investors shifted to the perceived safety of government debt. Lower yields help gold by decreasing the opportunity cost of holding it instead of bonds.

Tracking lower with yields, the dollar dipped nearly 0.2%, supporting gold and other commodities by making them cheaper in other currencies.

Platinum and palladium fell 2.2% and 1%, respectively.

At the New York spot close: gold gained $18.18 to $2,638.80; silver added 4 cents, to $30.05; platinum dropped $20.60 to $937.85; and pa palladium shed $8.90 to $929.40 an ounce.