Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold rose 0.1% despite rising Treasury yields and a stronger dollar as inflationary concerns over President-elect Trump’s tariffs overcame diminished safe-haven demand due to an Israel-Hezbollah ceasefire. Silver added 0.7% to finish at $30.42 an ounce.

Israel’s security cabinet has agreed to a ceasefire with the Iran-backed military group Hezbollah, lowering somewhat the geopolitical risks brought on by the Gaza war.

While gold initially slipped on the ceasefire news, it quickly bounced back to a slight gain on Trump’s announcements of 25% tariffs on Canada and Mexico, intended to pressure them to prevent immigration, along with 10% on China. The aggressive tariff plan has rekindled worries about trade wars and inflation.

Meanwhile, the minutes from the Fed’s meeting in early November showed “many” officials advocating a gradual approach to reducing interest rates, citing renewed inflation concerns and uncertainty over the so-called neutral rate, which neither promotes nor retards economic growth.

Benchmark 10-year Treasury yields edged back over 4.3% on the tariff plans, limiting gold’s gains by increasing the opportunity cost for holding it instead of bonds for safety.

Tracking higher with yields the dollar picked up 0.1% against major rivals, pressuring gold and other commodities by making them pricier overseas.

Platinum rose 1.4% while palladium added 0.8%.

At the New York spot close: gold edged up $3.50 to $2,620.30’ silver rose 21 cents to $30.42; platinum picked up $13.20 to $925.60; and palladium advanced $7.40 to $989.50 an ounce.