Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold picked up 0.1% to close at a fresh 8-month high near $1,879 as oil rallied on the prospect of China's reopening and yields retreated slightly after the World Bank warned of a possible global recession in 2023.

The World Bank slashed its global growth forecast from 3% to 1.7% in 2023, saying the world economy will come "perilously close" to a recession as the US, Europe, and China struggle under the combined weight of inflation, rising interest rates, and covid fallout.

The World Bank's statement echoes IMF chief Kristina Georgieva's comments last week that one-third of the world will fall into recession this year because the big three economies—US, Eurozone, and China—are slowing at once.

Benchmark 10-year Treasury yields pulled back slightly on the downbeat outlook, lifting gold by decreasing the opportunity cost for holding it instead of bonds as a safe-haven asset. The dollar was virtually unchanged, hovering near a seven-month low.

Also buoying gold, US benchmark WTI crude jumped 3.3.% to more then $77.50 per barrel on hope's that the relaxation of China's covid rules and its resulting commercial reopening will boost demand in the world's second largest economy. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

Tomorrow's release of the December CPI report is expected to give further direction to the gold price by influencing the Fed's course of action on interest rates.

The other precious metals were mixed, with silver and platinum dropping 0.4% and 0.8%, respectively, while palladium added 0.2%.

At the Comex close: February gold gained $2.40 to $1,878.90; March silver slid by 18 cents to $23.48; April platinum dropped $4.20 to $1,084.30; and March palladium picked up $3.80 to $1,781.10 an ounce.