Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold rallied another 0.7% to close above $1,994 as the escalating Hamas-Israel war continued to push investors into safe-haven assets.

The metal climbed above $2,009 in intraday trade, retaking $2,000 for the first time since August, before sliding back on profit-taking. It ended the week 2.7% higher for its second straight weekly win.

Israel stepped up its bombardment of Gaza, leveling a northern district and hitting an Orthodox Christian church. Despite cautions from the US and UK this week, Prime Minister Netanyahu has made clear that a ground assault is coming.

Benchmark 10-year Treasury yields pulled back as investors, worried about the possibility of a wider conflict, shifted into the perceived safety of US government bonds. Falling yields boost gold by decreasing the opportunity cost for holding it instead of bonds as a haven asset.

Tracking lower with yields, the dollar slipped against major rivals, boosting gold and other commodities priced in it for global trade by making them cheaper in other currencies.

Gold traders also weighed yesterday’s somewhat dovish comments from Fed Chair Jerome Powell, who left the door open for an additional rate hike but emphasized that the central bank is cognizant of geopolitical and economic risks and will move carefully.

Fed fund futures traders now see merely a 24% chance of another hike this year, down from 40% before Powell’s comments.

The other precious metals were mostly higher for the day and week. Silver surged 2% today for a weekly rise of 2.6%. Platinum picked up 0.8% for the day and 2.4% for the week. Outlier palladium slid 0.7% for a weekly loss of 3%.

At the Comex close: December gold gained $13.90 to $1,994.40; December silver jumped 47 cents to $23.50; January platinum rose $6.90 to $884.20; and December palladium dropped $7.30 to $1,111.20 and ounce.