Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold rose another 1.7% to close above $2,672 despite upbeat jobless claims and increases in Treasury yields and the dollar as escalating turmoil in Ukraine and the Middle East drove safe-haven demand. It was bullion’s fourth straight day of gains, taking it to a new one-week high. Silver slipped 0.1% to finish at $30.91 an oune.

First-time jobless claims fell by 6,000 to 219,000 last week, the lowest level in seven months, as employers are increasingly cautious about laying workers off. But the total number of ongoing claims rose exceeded 1.9 million for the first time since 2018, excluding pandemic years, meaning the unemployed are having difficulty finding new jobs.

Russia fired a barrage of long-range missiles into Ukraine in an initial retaliation for similar action by Ukraine earlier this week. Putin also lowered the threshold for using nuclear warheads in response to attacks with conventional weapons, substantially increasing the risk of a wider war.

Separately, the US vetoed a new cease-fire resolution for Gaza.

Benchmark 10-year Treasury yields ticked up slightly as traders speculated that the falling first-time jobless claims may slow the Fed’s rate-cut cycle. Fed fund futures posit a 59% likelihood of a quarter-point reduction in December, down from 80% little more than a week ago.

The dollar rose 0.4% to a fresh one-year high against major rivals on safe-haven inflows because geopolitical tensions and the shifting rate outlook.

Platinum slid 0.7% while palladium rose by the same amount.

At the New York spot close: gold gained $45 to $2,672.10; silver slipped 3 cents to $30.91; platinum dropped $7 to $966; and palladium picked up $7.60, to $1,044.90 an ounce.