Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold inched up 40 cents to close at $1,928.60 as recession worries and a dip in the dollar lofted alternative stores of value despite an upbeat day for US stock markets. It was the metal's highest finish since late April.

The index of leading economic indicators fell 1% in December due to a softening labor market and pervasive weakness in manufacturing, housing construction, and financial markets. Considered a key barometer of US economic health, the LEI also plunged 1.1% in November.

The National Association for Business Economics reported that 52% of economists surveyed believe the US will enter a recession in 2023. For the first time since 2020 more economist expect unemployment to rise than fall in the next three months.

Despite widespread economic pessimism, Wall Street had its best day in a month. Tech stocks led the way on expectations that the slowing economy will make the Fed less aggressive with rate hikes in coming months. The tech-heavy Nasdaq added 2% while the Dow and S&P 500 picked up 0.8% and 1.2%, respectively.

The dollar edged down slightly as the euro rose on hawkish remarks from ECB president Christine Lagarde, who said the ECB will keep raising rates quickly to slow inflation. A weaker dollar supports gold by making it less expensive in other currencies.

The other precious metals were mixed. Silver fell 1.6%; platinum rose 0.8%; and palladium dropped 1.3%.

At the Comex Close: February gold added 40 cents, to $1,928.60; March silver dropped 38 cents to $23.55; April platinum picked up $8.50 to $1,056.30; and March palladium shed $21.80 to $1,701.40 an ounce.