Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold jumped 1.2% to close above $1,983 as soft US data pressured Treasury yields, boosting alternative stores of value.

First-time jobless claims rose to a three-month high of 231,000 last week and ongoing claims rose for the eight straight week to a seven-month high of 1.83 million. Coming after last week’s weaker-then-forecast nonfarm payrolls report, the data points to a decidedly cooler labor market.

Walmart CEO Doud McMillon said today that the giant retailer is expecting a “period of disinflation” in coming months as the economy cools further and consumer demand slows.

The statement comes after consumer inflation was flat for October, dropping the annualized CPI down to 3.2.%. The headline PPI showed wholesale inflation was even milder, retreating 0.5% in October for the biggest decline in wholesale inflation since April 2020.

Benchmark 10-year Treasury yields tumbled below 4.4% as investors sought safety and bet against additional rate hikes from the Fed. Falling yields lift gold by decreasing the opportunity cost for holding it instead of bonds as a safe-haven sset.

Fed fund futures traders now see virtually no chance that the Fed will raise rates at its next two meetings. The odds of a rate cut in March have risen to 33% from 25% yesterday.

The other precious metals were also higher, with silver surging 1.7% while platinum edged up less than 0.1% and platinum picked up 0.9%.

At the Comex close: December gold gained $23 to $1,987.30; December silver jumped 40 cents to $23.92; January platinum added 80 cents, to $902.80; and December palladium rose $9.30 to $1,049.60 an ounce.